A Bunch Of Funds Rolled Into One

Investors get convenience, but at a price

The fund of funds, a hot investment idea of the go-go '60s, is finding new life in the '90s. These funds invest neither in stocks nor bonds, but in other mutual funds. Since the end of 1995, their number has more than tripled to 80, with $20 billion in assets, and more are on the way. On Sept. 16, Charles Schwab & Co. launched a small-cap fund that's the fourth in a series that invests in funds sold by the Schwab OneSource mutual-fund supermarket.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.