International Journal of Scientific Research and Engineering Development

The study, “Funds of Funds: Making Global Diversification Easy for Retail Investors”, explores the role of Funds of Funds (FoFs) as a simplified and accessible investment avenue for small and medium investors. Unlike direct investments in mutual funds, FoFs operate as a "basket of baskets," offering built-in diversification, professional management, and access to international markets. Through a survey of 120 respondents, supported by descriptive statistics, correlation, and regression analysis, the study investigates FoFs’ impact on simplification, diversification, cost-effectiveness, behavioural bias mitigation, and accessibility. Findings reveal that FoFs significantly enhance investment convenience, reduce concentration risk, and counteract behavioural pitfalls, although concerns remain regarding additional costs and transparency. Recommendations emphasize improving investor awareness, cost disclosure, product customization, and regulatory support to strengthen investor confidence. Overall, the study concludes that FoFs act as a democratizing financial tool, enabling retail investors to achieve global diversification with reduced complexity and greater inclusivity.