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Principles of Finance a la shmoop living examples of families of mutual

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funds so what are a few living examples of families of mutual funds well first [Man presenting powerpoint]

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you have American Funds Capital Group they're what's known as a managed fund

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American funds is one of the oldest and largest of the family fund groups its

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enormous but what is a family fun group yeah one who goes to Disneyland together [Family riding rollercoaster]

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a family fund group however is well something different it's a collection of

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hires of finance professionals who together manage money in a variety of

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different generally public investment vehicles like growth funds, growth and

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income funds, bond funds, muni bond funds stuff like that well a professional

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analyst who is well schooled in the topic of energy and how energy monies ]Man with two arms appears]

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get spent around the world well they might have some money they're

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responsible for in a growth fund and other money they're responsible for in a

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balance fund and an income fund and still other money they're responsible

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for in a bond fund the family of funds are marketed under the same brand name

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but often have the same people actually affecting the portfolio across multiple [Blind folded man throws dart into buy square]

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sets of funds that's a whole family they're all kind of linked and they're

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all linked with the same genetics or at least the same people behind the

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various flavors of fund got it okay and each fun can be different so some funds

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seek growth anywhere like go invest just go make money we don't really care how [Man stood by trees with money attached to branches]

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you do it others seek a defensive posture to weather any climate and [Man in a cave and bears appear]

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simply preserve capital so like in bear markets they better perform really well

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we're gonna hold a lot of cash and safe bonds right? others just want a

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bunch of boring government bonds nothing that just sort of sit there...

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right note the fees with everything they averaged in a

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bit under 1% a year okay it's a managed fund 1% a year, second we have Vanguard

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which is an unmanaged fund it might be the index fund king of the world in fact [Vanguard King appears]

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and one important thing to note here is that Vanguard offers both index funds

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and exchange-traded funds so index funds versus ETFs you're gonna learn all about

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those two there's kind of a Smackdown they're very similar so how does all

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this relate to the story of bubbies famous sauce well at the end of the [Bubbie making sauce in a kitchen]

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story it'll probably be a public company which means that it'll most likely be

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owned in one or more of the funds you've just uncovered in this lesson...

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