Fund networks, sometimes called fund supermarkets, offer access to thousands of different mutual funds from many of the major fund families.
Investing through a fund network can make it easier to diversify your portfolio, or put your assets into a variety of investments, since you have access to all the funds through one account.
And you can usually - although not always - transfer assets from one fund family in the network to another without an exchange fee although sales charges may apply with some funds.
In addition, capital gains taxes may be due if you're investing through a taxable account and the shares of the fund you're leaving have increased in value.
- Browse Related Terms: 12b-1 fee, Back-end load, breakpoint, Contingent deferred sales load, front-end load, Fund network, Level load, load, Load fund, Mutual Fund, No-load mutual fund, Redemption fee, Sales charge, Share class, Surrender fee