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.