Fund of Funds

A fund that invests in other funds. This may allow the investor to achieve additional diversification, but it may be overlapping and the investor may pay more in expenses than the additional diversification is worth, since they are paying expenses to the fund of funds and the funds the fund of funds invests in.
According to “The Great Crash”, fund of funds were very popular in the boom era of the 1920s before the Great Depression. However, fund of funds nowadays may not indicate market euphoria.

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