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An investment that is a fund of funds relies on the ability of the customer as well as the supplier to contribute to the fund. This combination results in a very strong joint investment.

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Q: What type of investment is a fund of funds?
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Define hedge fund?

Hedge fund is an investment fund for a limited range of investors allowed by regulators to undertake a wider range of investment and trading activities than any other investment funds.


Growth funds vs. dividend funds?

Growth funds are funds where your investment would grow year on year and you do not realize any gains until you surrender your investment. Dividend funds are funds where your investment would grow and at the same time you get regular earnings as form of dividends. Because dividend funds share their profit regularly, the NAV of a dividend fund is always lesser than the growth fund.


What is an equity fund in a mutual fund?

A mutual fund which invests a minimum of 65% of its fund corpus in equity and equity related instruments is known as equity mutual fund. As in the case of other mutual funds, equity funds also carry risks as they investment in the stock market. However, they also ensure high returns. Equity funds are of different types such as Index Funds, Sector Funds, and Diversified Equity Funds.


What does the MFS Funds do in business?

MFS Funds is one of the oldest global asset and investment companies in America. In business, MFS Investment Management is known for pioneering the mutual fund.


What is the difference between a mutual fund and a bond mutual fund?

A Bond mutual fund is a type of mutual fund that invests in bonds and other government securities that are safe and have a fixed rate of return. Whereas the term mutual fund per say refers to equity mutual funds in most cases which invest in the stock market.Bond mf's are safer whereas equity funds come with a certain risk component but at the same time the returns on equity funds are much higher when compared to bond fundsAnswer:Bond funds are investment vehicles that are meant specifically for people who are looking for low risk investment options, but want higher returns than they would get from a fixed deposit. The NAVs of most bond funds don't fluctuate as much as equity funds. Bond mutual funds invest in bonds issued by the government or corporate houses. Mutual funds investment involves a group of investors pooling in their money to invest in securities, which could be stocks or bonds. Mutual funds are considered a low risk-high return investment vehicle. If you're interested in mutual fund investment, you may want to get some professional advice.

Related questions

How does a hedge fund differ from a fund of funds?

A hedge fund is an investment vehicle that can invest in equities, bonds, commodities, currencies, optiones, futures, and non-traded companies, among other instruments. A fund of funds is an investment vehicle that invests in a portfolio of hedge funds (or other funds).


Define hedge fund?

Hedge fund is an investment fund for a limited range of investors allowed by regulators to undertake a wider range of investment and trading activities than any other investment funds.


Growth funds vs. dividend funds?

Growth funds are funds where your investment would grow year on year and you do not realize any gains until you surrender your investment. Dividend funds are funds where your investment would grow and at the same time you get regular earnings as form of dividends. Because dividend funds share their profit regularly, the NAV of a dividend fund is always lesser than the growth fund.


What is an equity fund in a mutual fund?

A mutual fund which invests a minimum of 65% of its fund corpus in equity and equity related instruments is known as equity mutual fund. As in the case of other mutual funds, equity funds also carry risks as they investment in the stock market. However, they also ensure high returns. Equity funds are of different types such as Index Funds, Sector Funds, and Diversified Equity Funds.


What does the MFS Funds do in business?

MFS Funds is one of the oldest global asset and investment companies in America. In business, MFS Investment Management is known for pioneering the mutual fund.


What is the definition of a pension fund?

The definition of a pension fund is a fund started by an employer to help and to regulate the investment of employees retirement funds given to by the employer and the employees.


What is the difference between a mutual fund and a bond mutual fund?

A Bond mutual fund is a type of mutual fund that invests in bonds and other government securities that are safe and have a fixed rate of return. Whereas the term mutual fund per say refers to equity mutual funds in most cases which invest in the stock market.Bond mf's are safer whereas equity funds come with a certain risk component but at the same time the returns on equity funds are much higher when compared to bond fundsAnswer:Bond funds are investment vehicles that are meant specifically for people who are looking for low risk investment options, but want higher returns than they would get from a fixed deposit. The NAVs of most bond funds don't fluctuate as much as equity funds. Bond mutual funds invest in bonds issued by the government or corporate houses. Mutual funds investment involves a group of investors pooling in their money to invest in securities, which could be stocks or bonds. Mutual funds are considered a low risk-high return investment vehicle. If you're interested in mutual fund investment, you may want to get some professional advice.


Are mutual funds liquid?

It depends on the type of fund. Open ended funds are liquid because the investor can always surrender his investments at any time and redeem them as cash in 1-3 days. Close ended funds are not liquid because the investor cannot redeem his investment until the investment period is over.


Is a specialty fund type of stock fund or mutual fund?

A specialty fund is basically a fund that specializes in a certain investing approach or asset class. For example within stock funds you can have small cap funds (funds that focus on investing in smaller companies), value based investors (funds which focus on valuations in their investment decisions), or small-cap value fund (combination of those two), and so-on. An example of an asset class specialty would be a commodities fund. For a range of different fund types see: http://www.fundterms.com/search/label/Term%20Group%20-%20Fund%20Types


How risky are hedage funds?

Hedge funds are considered a risky investment. The reason they are considered risky is because they are a type of fund that is not regulated.


What mutual funds?

Mutual fund investment is actually made up of pool of funds collected from various other investors to invest stocks, money market instruments and similar assets. Mutual funds are controlled by fund managers, who invest the fund's money and attempt to produce capital profits for fund investors.


Do fund of funds raise money?

A Fund of Fund is a Mutual Fund where the fund manager does not buy individual stocks. Instead he buys mutual funds of a particular type. Maybe Equity Oriented Funds or Debt Oriented Funds etc. When the Fund of Fund starts an IPO, they raise money from investors and then begin investing money in the various fund schemes