Many new investors who learn about mutual fund investments still ask me, “What is a mutual fund family?“.  The answer is really very simple and there are a host of benefits for those who prefer to consolidate their portfolio and retirement accounts within a single, large mutual fund family such as Vanguard or Fidelity.

Some of these benefits can even include access to special classes of mutual fund shares that have a lower mutual fund expense ratio, saving you a lot of money over your lifetime!  If your portfolio is large enough, you might even be able to get free commissions from your stock trades included in the deal.  On the other hand, the need to use a mutual fund family can be cut down drastically if you hold your shares through a stock broker such as Charles Schwab & Company, which allows commission-free trading on thousands of funds.

Which is the better investment method?  Only you can decide but you won’t know until you examine the pros and cons for yourself.  Get started right now by reading “What is a Mutual Fund Family?” …

Is a Mutual Fund Family a Better Option for Your Portfolio? originally appeared on About.com Investing for Beginners on Monday, August 15th, 2011 at 00:15:28.