This last category has brought a smile to the faces of Gulf investors who committed their faith and cash to them over the past year. The technology and telecommunications companies that make up many of these funds have been flying of late, their performance eclipsed only by even more stellar performers, such as funds exposed to the European bio-technology sector, where holdings in hot companies at the forefront of genetic research and healthcare advances have generated rich rewards. For the more adventurous, individual stock-picking is also an option. Online brokerages, such as Charles Schwabb, allow investors to buy and sell US and European equities easily, and with low commission charges. This path can offer rapid returns - but equally large losses.
All good things come to an end and historical performance is no firm indicator of what lies ahead.
The Internet-driven explosion of highly attractive technology stocks cannot last, say some Gulf analysts. At some stage there is likely to be a major correction and some of these stocks which are arguably over-valued are going to suffer a mighty fall. The trick, of course, is to get your timing right and not be too heavily exposed to them when that happens. The old adage of not putting all your eggs in one basket still applies. The universe of mutual fund options available will help make this possible and you should diversify not just buying into different funds, but also by entrusting your dosh to more than one investment house.