Fund-of-funds assets more than doubled in five quarters

The shift

A fund of funds (FoF) invests in other mutual fund schemes instead of buying shares or bonds directly. AMFI's quarterly average-AUM release reports FoF assets on a separate line from everything else, and that line has been the fastest-growing part of the industry.

In July–September 2026 the AMCs' average fund-of-funds assets were ₹2,28,819 crore. Five quarters earlier, in April–June 2025, they were ₹1,06,096 crore. That is an increase of 116%. Over the same period the industry's assets excluding FoFs rose from ₹72,13,747 crore to ₹87,21,848 crore, or 21%.

All figures below are AMFI's quarterly average assets under management (AAUM), as held in WealthTicker's database for each fund house.

Six quarters

Over the latest year, to July–September 2026, FoF assets rose 72.8% against 13.1% for the rest.

The pace has slowed sharply. The two quarters ending December 2025 and March 2026 added 29.4% and 23.1%. The two since have added 4.7% and 3.6%. In the latest quarter the rest of the industry grew faster, by 4.9%, so the FoF share slipped from 2.59% to 2.56%, its first fall in the six quarters shown.

Who holds the money

These ten account for ₹2,10,464 crore, or 92.0% of the total. ICICI Prudential alone holds 28.2%. Thirty fund houses now report FoF assets, up from 24 a year ago.

How much of each house's business this represents differs a lot. FoFs are 11.9% of Edelweiss's assets, 6.7% of Motilal Oswal's and 5.3% of ICICI Prudential's, but only 1.9% of SBI's and 1.1% of Aditya Birla Sun Life's.

What drives it

The data cannot say why, but the categories that make up FoFs are visible in the scheme list. Many are multi-asset or asset-allocation FoFs that hold the house's own equity, debt and gold schemes. Others are overseas FoFs that feed an international fund, and others are gold and silver FoFs that sit on top of exchange-traded funds. For the performance side, see gold fund of funds, silver fund of funds and international funds.

A house that runs FoFs over its own schemes counts the same rupee twice, once in the FoF and once in the scheme it buys. That is why the two lines should not be added together.

What this does not tell you

FoFs cost twice. An investor pays the FoF's expense ratio on top of the underlying schemes' own costs, though the underlying cost is often a Direct plan figure. The direct vs regular cost gap post shows the fund-of-funds median for each plan.

A quarter's average is not a closing figure. AAUM smooths month-end swings, so it lags a sudden inflow or outflow.

The data cannot separate flows from price moves. Part of any rise is simply the underlying funds' NAVs going up, and gold and silver FoFs especially have been moved by metal prices.

None of this is a view on any fund house or scheme.