DEFINITION of 'Family Of Funds'

A group of mutual funds offered by one investment or fund company. Generally, the constituent funds cover a wide range of fund categories and investment objectives.

Also referred to as a "mutual fund family" or simply a "fund family".

BREAKING DOWN 'Family Of Funds'

Most fund companies offer a selection of mutual funds for investors to choose from. A large fund family offers investors a number of conveniences, such as "one-stop" shopping for their fund investing activities, the consolidation fund investments in one monthly statement, and the opportunity to make money transfers and undertake fund exchanges within the family easily and, usually, at little or no cost.

Examples of large, well-known fund families are American, Fidelity, T. Rowe Price and Vanguard.

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