Investors like fund supermarkets because they consolidate paperwork and transactions.

Similar services are provided to individual investors by the "fund supermarkets" at discount brokers like Charles Schwab.

The advantages of fund supermarkets are low cost, wide selection and convenience.

And, the prospectus states, new cash has been flowing in, particularly from investors in mutual fund supermarkets.

Many investors now buy funds through retirement plans and mutual fund supermarkets without paying commissions.

The obvious conclusion: With more information available and better access provided by the mutual fund supermarkets, investors have gained enough confidence to make their own decisions.

Advisers use the fund supermarkets because their consolidated balance sheets provide an efficient way to handle paperwork.

The funds are available through fund supermarkets like Charles Schwab, and directly from fund companies.

Ms. Snyder said that less than one-third of the company's overall cash flows came from mutual fund supermarkets.

He was particularly concerned by financial platforms - such as fund supermarkets - that rebate fees to customers.