Fund of Funds (Overseas/Domestic)

About

A Fund of Funds (FoF) is a mutual fund scheme that invests in other mutual fund schemes instead of investing directly in stocks, bonds, or securities.

There are two types:

Domestic FoF – Invests in Indian mutual fund schemes.
Overseas FoF – Invests in international mutual funds or global ETFs (e.g., funds tracking global markets like the S&P 500).

FoFs allow investors to access diversified strategies or global markets without directly managing multiple funds.

Fund Type

Other Schemes

Key Features

Diversification Across Funds – Invests in multiple schemes through one investment.

Access to Global Markets – Overseas FoFs provide international exposure.

Rebalancing Managed Internally – Fund manager adjusts allocations.

Lower Minimum Investment – Compared to investing directly in international markets.

Taxation

STCG

If Equity Allocation is ≥ 65% Holding Period ≤ 12 months, 20% Tax on Gain. Otherwise as per Income Tax slap

LTCG

If Equity Allocation is ≥ 65% Holding Period > 12 months, 12.5% Tax on Gain. Otherwise as per Income Tax slap

Dividends Tax

As Per Income tax slab rates, TDS of 10% may be deducted by the fund house if dividend income exceeds ₹5,000 in a financial year.

Exemption Limit

If Equity Allocation is ≥ 65%. 1.25 Lakh on LTCG in financial year

Indexation

No Indexation

Allocation

SVG Icon

Domestic/Overseas FoF

95%

Other

FoFs do not directly hold stocks or bonds (except small cash components).

Locked in Period

Nill

Exit Load

Some Index Funds schemes might charge an exit load of 0% – 1% if units are redeemed within 6–12 months. However, the exact structure may vary based on the specific scheme.

Risk Associated

Depends on scheme type. Above Riskometer is just for visual representation.

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.