What is a family of mutual funds?

A family of mutual funds refers to all mutual funds that are offered by the same investment management company. This structure allows the investment company to provide a variety of investment options to meet diverse goals and risk tolerances for its investors.

When investors choose from a family of mutual funds, they can select funds with different investment strategies, asset allocations, and risk profiles, all while maintaining their investments within the same management firm. This can simplify the investment process, as it allows for easier transfer of funds between options offered by the same company, often with reduced transaction costs. The presence of multiple funds under one management umbrella can also provide advantages in terms of research, management, and consistency in investment philosophy.

Other choices imply specific categories or characteristics of mutual funds but do not encompass the broader definition that the correct answer captures. For instance, a group of actively managed funds or funds focusing solely on real estate are examples of specific fund types but do not describe the complete range of options within a single investment firm's offerings. Similarly, while high-risk profiles are a characteristic related to some funds, they don't define the familial aspect of mutual funds under a management company. Overall, option B correctly identifies the complete grouping that constitutes a family of mutual funds.