Mutual Funds: Fund Families

Sometimes a family name gives everything away. This is often true of fund families.

Mutual fund companies typically have a variety of offerings for investors -- some firms with a handful, some with more than 100. Fund families, in addition to developing a reputation based on their funds' performance, often become associated with a particular brand of investing.

As a quick example, let's look at two fund families that have in common stellar reputations and histories of strong returns, but diverge when it comes to investing style. Funds from the Janus family are known for investing in stocks and industries such as technology that offer the potential for high growth, as well as high risk. Conversely, Vanguard funds have built a name for offering index funds, which try to match the performance of a stock index such as the S&P 500 while keeping expenses down. ...