The conception of fund of funds may be a less efficient technique for Islamic funds due to the number of Islamic funds as well as the higher commissions and fees involved.

Question

Quizplus · Accepted Answer

Fund of funds (FoF) involves investing in a portfolio of other investment funds rather than directly in stocks, bonds, or other securities. This can be less efficient for Islamic funds due to the limited number of Islamic funds available, which may restrict diversification options. Additionally, the layered structure of FoFs can lead to higher commissions and fees, as investors may have to pay fees for both the FoF and the underlying funds, potentially reducing the overall return on investment.

The Conception of Fund of Funds May Be a Less