Family of Funds

A “Family of Funds” refers to a collection of mutual funds or investment funds that are managed by the same investment company. This arrangement allows investors to have a variety of investment Options under one umbrella, often facilitating easier transfers and management of investments.

Examples include:

• Vanguard Family of Funds: Offers a range of funds including Stock, bond, and Money Market Funds.
• Fidelity Investments: Provides various funds such as Index Funds, actively managed funds, and sector-specific funds.

Cases:

• An investor may start with a bond fund within a family of funds and later decide to transfer some Assets to an Equity fund offered by the same company.
• A retirement plan may include multiple funds from a family, allowing employees to diversify their investments easily.