Fidelity: The Family That Works Together...

Abigail "Abby" Johnson, daughter of Edward "Ned" Johnson III, is closer to taking the position captained by her father and grandfather at the helm of mutual fund giant Fidelity Investments.

In the land of mutual funds, Fidelity is king, with $1.2 trillion in mutual fund assets. While peers were crushed by the 2008 economic meltdown, Fidelity reeled in $2.36 billion in profits. In the first six months of 2009, Fidelity has already reported $44 billion in net inflows, and as Rodger Lawson prepares to exit his no. 2 position, Abby is ready in the wings.

Nepotism is common in the top ranks of family-run, privately held businesses. Having someone from the inner circle take over an empire can help to keep interests aligned. It is important, however, for the exercise of nepotism to be thoughtful, and perhaps no family is a better example of this process than the Johnsons.

Fidelity Investments was founded in 1949 by Edward Johnson II and has always been controlled by the Johnson family. Under the family's oversight, Fidelity has grown to be the largest mutual fund company in the world.

Fidelity's Abigail Johnson

Fidelity has always stayed true to its roots as an investment firm, even as it has grown other business interests. This focus has endured throughout various economic cycles, and Fidelity will not be quick to abandon its philosophy even during challenging times. "Diversification didn't fail in the recent market downturn. It worked -- just to a lesser degree," Fidelity noted in a recent report to clients.