Lecture 5 (18). Chapter 2: Fund-of-Funds and Offshore/Feeder Funds

Two more fund structures worth understanding properly before we get into how to choose one. Both genuinely relevant to a "lazy and busy" approach, for different reasons.

Fund-of-Funds

Rather than holding shares or bonds directly, a fund-of-funds holds units in other funds. The appeal is an extra layer of diversification and access to several specialist managers or strategies inside one single purchase: useful if you want broad exposure without personally selecting five different underlying funds yourself.