# Fund of Funds

*Careers & Credentials — Finicade finance glossary*

A fund of funds invests in other funds, offering diversification, manager selection and access to closed strategies. Its structural problem is fees on fees: an extra layer on top of underlying charges that already run high, which is a heavy hurdle for the selection skill to clear. The model has lost ground to direct allocation and to advisory mandates that charge less for similar work.

**Also known as:** FoF, multi-manager fund

**Related terms:** [Hedge Fund](https://finicade.com/glossary/hedge-fund), [Private Equity](https://finicade.com/glossary/private-equity), [Diversification](https://finicade.com/glossary/diversification), [Management Fee](https://finicade.com/glossary/management-fee), [Assets Under Management](https://finicade.com/glossary/assets-under-management)

Source: https://finicade.com/glossary/fund-of-funds