A feeder fund is an investment vehicle similar to a fund of funds but typically invests all its assets into a master fund, which is responsible for managing the investments. This structure is common in hedge funds.
A Fund of Funds (FoF) is a mutual fund or hedge fund that invests in a portfolio consisting of other investment funds rather than investing directly in stocks, bonds, or other securities. This investment strategy provides enhanced diversification and the potential for reduced risk by spreading investments across multiple fund managers and asset classes.
