Institutional investors preferred the domestic Fund of Funds (FoF) most among the MF categories in the last one year. AMFI data shows that their investment in domestic FoF more than doubled past year to Rs. 13,799 crore in September 2022. Within the category, debt FoF which are investing primarily in target maturity plans (TMF) received significant inflows past year. Experts attribute that corporates and high net-worth investors prefer TMF to lock in their money at an elevated yields given the rising-interest-rate scenario. SEBI recently prescribed direct transaction with AMCs in the ETF should be facilitated for above Rs 25 crore. This also made FoF attractive as it provides feasible liquidity.