A money-market fund will preserve your capital and yield interest higher than bank deposits. Or you can buy a fund that invests in ultra-safe government bonds. The most volatile unit trusts are those that invest in specialized instruments like warrants, which confer the right to buy a stock at some future date for a price higher than the current selling price. The manager is betting on the risky proposition that the stock will be trading even higher on the day the contract expires. Warrants occupy the first two places in the Top 200 Mutual Funds.
Equity funds buy the shares themselves.
Here, the manager chooses counters that he thinks will appreciate in value over time. A Thai equities fund is a loser these days. But a U.S. fund can boast an impressive return, as you can see from the Top 200 list. Less volatile, but also less rewarding, are mixed funds, which invest in stocks, bonds and the money market. In choosing which specific funds to buy, study track records.