The study attempts to evaluate the performance of Fund of Funds (FoFs) in terms of value addition over ordinary mutual funds in India. The performance of FoFs and individual mutual funds are compared with the risk-free returns as well as the benchmark index (BSC 100), which is taken as the proxy for the market returns. Samples were collected from the AMFI websites and respective AMC websites from April 1, 2007 to March 31, 2014 and the returns were calculated from the respective scheme's NAV price. The methods used in the study are risk adjusted tools of Sharpe ratio, Treynor ratio and Jensen Alpha. An analysis performed on the sample of equity-oriented fund of mutual funds showed that all the FoFs and individual mutual funds under study earned positive returns in excess of the risk-free rate of return offered by 91 days Treasury bill. The comparison between rates of return of the benchmark index and the sample of FoFs indicated that a majority of the equity FoFs have overperformed the benchmark. Such results might have been the result of well-designed diversification strategies in the portfolios. The results reveal that the performance of FoFs posted positive Sharpe, Treynor and Jensen Alpha. The better performance of FoFs strongly explained the added value of FOF in comparison to individual mutual funds in India.