New Delhi, June 11 -- Fund of Funds (FoFs), as the name suggests, are mutual fund schemes that invest in other mutual funds rather than directly purchasing stocks, bonds, or other securities. Some FoFs invest in a basket of mutual funds, while others are designed to track a single ETF, providing exposure to a specific asset class or theme.

So, let's understand the meaning of FoFs, their types, key benefits, and limitations.

Fund of Funds are a type of mutual fund that does not invest directly in stocks, bonds, or other asset classes. Instead, they invest in other mutual fund schemes or just track an ETF or index fund. These funds allow you to get exposure to a diversified portfolio through a single fund.

As per SEBI regulations, FoFs a...