ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Finance: What is a Family of Funds? 6 Views
Share It!
Description:
What is a Family of Funds? A family of funds refers to all of the funds managed by an investment firm. These firms offer investors the ability to invest in the family of funds and the investor enjoys the benefits of the diversification that results from this.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Financial Theory
- Terms and Concepts / Index Funds
- Terms and Concepts / Investing
- Terms and Concepts / Managed Funds
- Terms and Concepts / Mutual Funds
- Terms and Concepts / Stocks
- Terms and Concepts / Tech
- Terms and Concepts / Trading
Transcript
- 00:00
Finance a la shmoop what is a family of funds? a family, a mutual fund family [Family hugging each other]
- 00:09
that's what we're talking about here you know that go it's the story of a lovely
- 00:14
mutual fund yeah alright nevermind sorry here are
- 00:19
the mama bear income funds yeah filled with dividend stocks and bonds safe [Mama bear bowl tips out dividend and bonds]
- 00:23
steady reliable and here are the Papa Bear growth funds filled with tech
Full Transcript
- 00:28
stocks and risky things that pay no dividend they traded high multiples too...
- 00:33
just for your pleasure yeah well he's great when he's sober
- 00:36
that Papa Bear and happy and not in his kind of market ie bear it makes a high
- 00:42
multiple stock do bad things all right well then there are the baby bear [Baby bear fund blocks building blocks appear]
- 00:46
funds aw cutie-wootie shmoody pie, here's a small cap fund young companies sowing
- 00:52
their oats not exactly certain where to urinate.. yeah we've been there it's a
- 00:57
not a pretty sight and here's an international fund China, Russia, Latin
- 01:02
America someday maybe Mars and here's an emerging market fund maybe that's where
- 01:07
Mars belongs....it's really small but it has big hopes like [Ant appears beside a tree]
- 01:11
that ant and the rubber tree plant alright we won't sing why do we label
- 01:15
these funds as being a family well because they all live in the same
- 01:20
investment management house that house might be called fidelity or capital
- 01:26
research for the American Funds brand or Franklin funds or BlackRock...Fund families
- 01:33
usually grew up around one or two successful individual funds that funds
- 01:38
managers garnered a solid reputation among the people who know on Wall Street [People give thumbs up to fund manager]
- 01:42
and while they simply tacked on additional funds leveraging the
- 01:46
superstar fund or two that brought them to the dance
- 01:49
tons of synergies happen when funds exist under one house shared legal work
- 01:54
shared research analytics shared portfolio management, duties, shared
- 01:58
brains, shared distribution compliance 12B-1 fees and more brain pulses a lot of
- 02:04
brains one house lots of funds if you're a partner in one of them well
- 02:08
financially it's lots of fund....you know it's like a family family affair [Family sitting in a garden eating food]
Up Next
GED Social Studies 1.1 Civics and Government
Related Videos
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...