A group of mutual funds sold by the same sponsor. Typically investors may apply purchases in all funds (within the family) toward sales charge breakpoints, and may switch from one fund to another as conditions change. See also: Breakpoint; Exchange Privilege.
An investment management company offering funds with many investment objectives. Fund families often allow investors to transfer money between funds for either a nominal charge or no charge at all. Thus, an investor with shares in a growth fund could transfer all or part of his or her assets into another fund without paying a new sales charge if each of these funds is managed by a single investment firm.
Group of mutual funds managed by the same investment management company. Each fund typically has a different objective; one may be a growth-oriented stock fund, whereas another may be a bond fund or an index fund. Shareholders in one of the funds can usually switch their money into any of the family's other funds, sometimes at no charge.
A family of funds is a mutual fund company that offers a broad range of funds with many different investment objectives. A family of funds may allow investors to freely switch among the various funds, which facilitates the movement of investor assets in response to shifting market conditions or changes in personal needs. Vanguard, Strong, T. Rowe Price and Fidelity are some of the more common large mutual fund companies that offer no-load diversified fund families.
A group of mutual funds managed by the same sponsor. Typically investors may apply purchases in all funds (within the family) toward sales charge breakpoints, as well as allowing investors to switch from one fund to another as conditions change. See: Breakpoint.
A group of mutual funds from the same fund company, each representing a different asset type or investment style. A family of funds enables the investor to make investment changes without changing mutual fund companies.
Many large mutual fund companies offer a variety of stock, bond, and money market funds with different investment strategies and objectives. Together, these funds make up a family of funds. If you own one fund in a family, you can usually transfer assets to another without sales charges-a transaction also known as an exchange. (Unless you hold the funds in a tax-deferred retirement plan, though, you will owe capital gains taxes on any increase in share value of the fund you're moving out of.) Investing in a family of funds can make diversification and asset allocation easier, provided there are funds within the family that meet your investment criteria. Investing in a family of funds can also simplify recordkeeping. However, the advantages of consolidating your assets within one fund family are being challenged by the recent proliferation of fund networks, sometimes called fund supermarkets, which make it easy to spread your investments among several fund families.
A group of mutual funds in which each fund has a different objective, yet all are managed by the same investment company. Usually shareholders of one fund can switch their money into one of the family's other funds, sometimes without incurring a charge. This makes it easier for investors to move their assets in response to changes in the market or in their needs. There may be tax consequences when money is transferred from one fund to another. See: Investment Company; Mutual Fund