I am investing in Kotak Arbitrage MF which in turn invests in three Kotak MFs equalling 21% of its assets.
Does that mean I am paying expense ratio for those funds in addition to what I hold in the Arbitrage fund?
The fund u mentioned may not be classified as an FOF, as it also makes investment in stocks separately, but yes, it is partly an FOF as 1/5th gets invested in other MFs.
The net returns from this fund is the Cumulative post-expense return of all the funds in which the investments are made + the return from the stocks.