Many investors seek out a family of funds in order to invest their money. Here are the basics of a family of funds and what they have to offer you as an investor.

Family of Funds

The term "family of funds" refers to a mutual fund company that offers several different types of funds. All of the funds will be run by the same company, as if they were different departments of the same organization. Investing in a family of funds can often provide you with more benefits than going with a single mutual fund.

Benefits of a Family of Funds

One of the major benefits of investing in a family of funds is that you can reallocate your assets at any given time. When you do not work within a family of funds, transferring your money to a different mutual fund can be costly because of the transaction fees involved. However, when you stay within the same family, you can often transfer to a different mutual fund free of charge.

In addition to that, the organization of the funds can be superior as well. You may be able to receive a single statement for your holdings in all of the different mutual funds instead of multiple statements.

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