Family of Funds

A family of funds includes all the funds managed by one investment company. Investing broadly across funds from one family of funds can offer many benefits.

A family of funds is managed by a registered management investment company. Registered with the Securities and Exchange Commission (SEC) under legislation governed by the Investment Company Act of 1940, these companies are credible investment managers regulated by the U.S.

Management investment companies can offer a broad range of products to investors including closed-end funds, open-end exchange-traded funds (ETFs) and open-end mutual funds. All of the funds offered by an investment company comprehensively constitute its family of funds.

Investing in many funds within a family of funds can provide for many advantages. A fund family can offer “one-stop” shopping for investors. A list of the top 100 mutual fund families by assets under management can be found here.

Management investment companies, such as Vanguard, offer investors a wide range of fund options and services. Open-end funds can be purchased and managed through a Vanguard account, allowing an investor to build out a comprehensive portfolio of open-end funds with various objectives. Vanguard also provides brokerage services which allow investors to buy the firm’s exchange-traded funds (ETFs) and any closed-end funds offered. Ultimately, an investor with Vanguard could choose to make all of their investments with Vanguard building out a broad portfolio with only Vanguard funds. This investor would be able to receive consolidated fund investment reports in one monthly statement showing all their investments with the fund family.

Investors with broadly diversified portfolios through a single fund family can also benefit from fund exchanges which are typically allowed with minimal or no fee. Do it yourself investors especially enjoy the advantages of exchanging funds within a fund family.

Investors can use exchange privileges to shift allocations in changing market environments. With some fund families investors can also automate exchanges which can be beneficial for retirement planning. Exchanging funds can help investors mitigate risk. Exchange privileges can also allow an investor to exchange into more conservative funds or cash funds as they near retirement.

The advantages of investing with a fund family can also go beyond an investor’s invested funds. Most fund families also offer investment research, news on current events, and alerts on new products and offerings. Investment research from a fund family can be a great way to stay informed on a wide range of personal finance topics while also maintaining awareness of the company’s offerings and investment options.