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From The Glossary »

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Fund of Funds:

A fund of funds is a unit trust fund that invests in a range of other unit trusts. A dedicated fund manager makes the selection from any unit trust fund with specific performance objectives in mind. A fund of funds can offer reduced risk and lower volatility because of unit trust diversification. The cost of a fund of funds are higher than ordinary unit trust, as they are always invested in at least five underlying unit trusts. The investor should ...
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