New Delhi, July 15 -- Fund of funds (FoFs), which invest in other domestic funds, received Rs.8,647 crore of investor inflows in June, according to monthly data shared by the Association of Mutual Funds in India (Amfi) recently. In the preceding month, FoFs saw net inflows of Rs.5,829 crore. What has sparked this renewed interest? Here's what experts say

Experts attribute the increase in inflows to the innovative products that are being launched in this category.

Several fund houses have launched income plus arbitrage FoFs, which invest in a combination of a debt fund and an arbitrage fund.

These FoF schemes put 65% of the portfolio in debt and the remaining 35% in arbitrage funds - the exact reverse of what pure arbitrage funds do (35...