To evaluate a mutual fund scheme’s performance, it is vital to assess its returns in the past few years.
Here we dissect the past few year returns of top-performing fund of funds (FoFs) as revealed by the AMFI (Association of Mutual Funds of India) as on June 15, 2022.
Some of the fund of funds (FOFs) gave muted returns, whereas a few delivered exceptionally high returns in the range of 14-23 percent per annum.
What are funds of funds (FoFs)? A fund of funds (FOF) is a mutual fund that invests in other types of funds. This means, its portfolio comprises numerous underlying portfolios of other funds. So, these funds, instead of investing directly in in bonds, stocks, and other types of securities, invests in other mutual funds.
One-year-returns
The past one year returns of most fund of funds remained low. Most fund schemes posted returns in the negative, while the fund schemes that gave positive returns were in single digits.
Nippon India Asset Allocator FoF gave 3.80 percent return. Kotak Multi Asset Allocator FoF - Dynamic gave 4.25 percent return, ICICI Prudential Thematic Advantage Fund (FOF) gave 3.45 percent return, and HDFC Asset Allocator FoF gave 4.31 percent return, according to the AMFI data, as on June 15, 2022.
Three-year returns
As we can see in the table below, the top-performing fund of funds gave high returns in past three years. ICICI Prudential Asset Allocator Fund (FOF) gave 12.94 percent return, ICICI Prudential Regular Gold Savings Fund (FOF) gave 14.08 percent return and DSP World Mining Fund gave 23.63 percent return.
| Fund of funds (FoFs) | Three-year-return (%) |
| ICICI Pru Asset Allocator Fund (FOF) | 12.94 |
| ICICI Prudential Regular Gold Savings Fund (FOF) | 14.08 |
| Kotak Multi Asset Allocator FoF – Dynamic | 16.74 |
| Motilal Oswal Nasdaq 100 FOF | 19.60 |
| DSP World Mining Fund | 23.63 |
(Source: AMFI data as on June 15, 2022).
At the same time, Motilal Oswal Nasdaq 100 FOF gave 19.60 percent fund, Kotak Multi Asset Allocator FoF - Dynamic delivered 16.74 percent return and ICICI Prudential Regular Gold Savings Fund (FOF) gave 14.08 percent return.
Here we give a snapshot of some of the top performing fund schemes:
Kotak Multi Asset Allocator FoF Dynamic: This fund was started in January 2013. Its return since inception is 13.89 percent. This means if someone had invested ₹one lakh at the time of inception, it would have grown to ₹3,45,999.
The portfolio comprises ETF units in the proportion of 19.39 percent, mutual funds in the ratio of 72.08 percent and overseas mutual fund in the ratio of 5.5 percent.
Motilal Oswal Nasdaq 100 FOF: This scheme was started in November 2018. Its return since inception was 37.7 percent. This means if someone had invested ₹one lakh in the scheme that time, it would have now grown to ₹2 lakh.
Its portfolio comprises Nasdaq ETF in the proportion of 97.6 percent.
