What type of fund consists of multiple mutual funds organized around a specific asset allocation model?

The correct choice is referred to as a fund of funds. A fund of funds is designed specifically to hold a variety of underlying mutual funds rather than investing directly in stocks, bonds, or other securities. This structure provides investors with diversification across multiple mutual funds that might have different investment strategies or asset classes.

By utilizing a specific asset allocation model, a fund of funds can enhance its risk-adjusted returns by selecting a mix of funds that aligns with its investment objectives. Investors benefit from the expertise of professional fund managers overseeing the selection and ongoing management of these underlying funds.

Target-date funds, while similar in that they may invest in a variety of other funds, specifically aim at a particular retirement date, automatically adjusting their asset allocation over time as that date approaches. Fund wraps typically provide a comprehensive service that may include a variety of investment options and advice, but they are not strictly defined by holding multiple mutual funds exclusively. Portfolio allocation services often refer to consultative services that help clients choose a mix of investments but do not necessarily imply the fund structure that a fund of funds represents.