Here's how its function breaks down:
* Gerund: "Swimming" is the gerund, a verb form ending in "-ing" that acts as a noun.
* Phrase: "Swimming at the lake" is a phrase because it's a group of related words.
* Function: The phrase functions as the object of the preposition "of." The sentence essentially says "My fondest memory is *of* swimming at the lake."
Let me know if you'd like to explore other examples of gerund phrases!