Re: i want to invest heavly , please suggest me ???
Well that's the problem on the downside. If the fund invests in A and B, the investor indirectly bears the admin fee of A,B AND the fund. However, one must also bear in mind other factors like the time saved in tracking, defining proportions in different funds etc. For the fund of funds itself, it's a relatively passive strategy, and the fee charged by the fund should a lot lesser than the actively managed ones.
Also, there is a possibility that the exposure of the funds in the invested mutual funds invested may be in the same stocks.
Fund of funds has a higher cost as the expense is paid on the FOF and the fund it holds. Correct me if i am wrong but all FOF invest in there own fund house. So that loses the potential of maximizing returns.
Also, there is a possibility that the exposure of the funds in the invested mutual funds invested may be in the same stocks.