Fund Supermarkets

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DEFINITION of 'Fund Supermarkets'

An investment firm or brokerage that offers investors a wide array of mutual funds from different fund families. Investors benefit by obtaining access to an extensive range of top performing funds, as well as by receiving a consolidated statement of all their mutual fund holdings.

INVESTOPEDIA EXPLAINS'Fund Supermarkets'

As the mutual fund industry has matured, fund families have been finding it increasingly difficult to channel investors to funds solely from their family, due to competition from other mutual funds and newer products such as exchange-traded funds. Investors also prefer investing across different fund families, since a single family is unlikely to have the top performers in all of the myriad categories now available.

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RELATED FAQS
  1. What advantages do exchange-traded funds have over mutual funds?

    Exchange-Traded Funds (ETFs) are growing ever more popular, as they were created to combine the best characteristics of both ... Read Full Answer >>
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    Mutual funds are currently the most popular investment vehicle and provide several advantages to investors, including the ... Read Full Answer >>
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    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>
  4. What action is the SEC likely to take on 12b-1 fees?

    The Securities and Exchange Commission (SEC) may take action to impose greater regulation on how 12b-1 fees are used, or ... Read Full Answer >>
  5. What is considered a reasonable 12b-1 fee?

    A reasonable 12b-1 fee is generally considered to be 0.25% of the assets of the mutual fund. The maximum amount allowed for ... Read Full Answer >>
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