Fund of funds (FOFs) are the mutual funds investing in other mutual funds and they don’t invest direct in equity. There may be different types of FOFs based on their investment strategy like international FOFs, multi- asset FOFs, Gold FOFs, etc. The advantages of FOFs are more diversification, less risk, etc. while there are some disadvantages of the FOFs also like, additional layers of fees, risk of overlapping of holdings, not having tax benefits of equity mutual funds, etc.