Fund of Funds (FoFs), which allocate capital across mutual funds or exchange-traded funds (ETFs), have seen increased interest among Indian investors.
With exposure to multiple funds through a single investment, FoFs enable participation in different market segments such as domestic equities, global assets, or index-linked instruments without requiring direct fund selection by the investor.
Below is a data-based review of how selected FoFs have performed over the past 5 years, based on a ₹10,000 monthly SIP totalling ₹6,00,000:
| Scheme Name | AUM (₹ Crore) | TER (%) | Current Value | Return (%) |
| ICICI Pru India Equity FOF | 178.37 | 0.63 | ₹10,53,150 | 23.49% |
| ICICI Pru Thematic Advtg FOF | 3,432.46 | 0.36 | ₹10,37,955 | 22.86% |
| ICICI Pru Passive Strategy Fund FOF | 194.18 | 0.15 | ₹9,48,413 | 18.96% |
| Nippon India Nifty Next 50 Junior BeESFoF | 576.56 | 0.12 | ₹9,38,985 | 18.54% |
| Quantum Equity FOFs Dir Gr | 127.89 | 0.51 | ₹9,11,126 | 17.27% |
| ICICI Pru Global Advtg FOF | 319.77 | 0.65 | ₹7,72,085 | 10.40% |
Note: The list of top-performing Fund of Funds (FoFs) in July 2025 is based on data available as of July 8, 2025. Performance figures may vary over time with market conditions
While the above funds have delivered notable returns, investors should also consider the structure of Fund of Funds when evaluating them. One key drawback of FoFs is the double layer of expense ratio: one at the underlying fund level and another at the FoF level. This can have a compounding effect on overall costs, especially over long investment horizons.
Additionally, while many FoFs provide access to global equity, thematic exposure, or passive investing styles, performance can vary widely depending on the market cycles and the underlying fund strategies.
Read More: These Top 10 Small Cap Mutual Funds Turned ₹1 Lakh Into ₹4.3 Lakh+ in 5 Years as of July 2025.
Conclusion
Fund of Funds offer a unique way to access a diversified portfolio through a single investment vehicle. Over the past 5 years, some FoFs have shown strong SIP performance, with returns exceeding 23% annually. However, expense structures and underlying fund selection remain key factors in long-term outcomes. As always, tracking risk-adjusted returns and total costs can help investors make more informed choices.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Published on: Jul 8, 2025, 12:27 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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