CAN'T DECIDE ON A MUTUAL? REST EASY
THE FUND OF FUNDS----A mutual fund that invests in other mutual funds--hasn't caught on with investment giants. Until now. Discount broker Charles Schwab is expected to file a prospectus soon for a series of such vehicles, picking various funds from among the 500 offerings in its OneSource program.
OneSource lets investors buy funds of such managers as Janus and Invesco. Schwab's new umbrella funds (international, growth, etc.) would let people diversify their investments without having to choose a portfolio of funds themselves. Experts think the Schwab plan may change the mutual-fund landscape. If it attracts the vast sums they anticipate, ``all the big companies will have a fund of funds within 12 to 18 months,'' says Robert Markman of Markman Capital Management.
Some large fund companies such as Vanguard and T. Rowe Price have launched such umbrellas, but theirs consist only of their own funds.
EDITED BY LARRY LIGHT, WITH LISA SANDERS By Jeffrey Laderman
Updated June 14, 1997 by bwwebmaster
Copyright 1996, Bloomberg L.P.