b'end of this chapter. For those who want the analysis explaining why a fund of funds is not as easy as it sounds, read on: First, What is a Fund of Funds?A fund of funds is an investment vehicle, such as a limited liability company, that allows an issuer to pool funds from a group of investors, that will invest as a single investor in others offerings.What Can You Gain by Creating a Fund of Funds? You can earn fees from your investors.You can earn a share of profits from your investors; however, doing so will dilute their returns versus what they would have received if they had invested directly on their own. If you bring enough money, you may be able to insert yourself into the asset management entity for the deal where you invested the funds, giving you some syndicate or fund management experience, and a share of their asset management teams fees and profits.What you CANNOT get is compensation that is based on the amount of money you brought to a deal. Thats a big No-No, as it would be construed as a transaction-based compensation, which can only legally be earned by licensed securities broker-dealers.Should I become a licensed Securities Broker-Dealer, you might ask? Not unless you want to start a full-time business investing other peoples money and earning commissions for it. Its a long and tortuous path to get 133'