You can also purchase funds from banks and large investment firms. The advantage with these companies is that you will receive advice but the disadvantage is that you may be limited in selection or the representatives may be partial to their own bank of firm products. Another way to buy funds is from an independent investment firm such as Atlantic Financial. We are not tied to any fund company's management so we give high quality and objective advice. There are several different types of mutual funds.
Some funds invest in regions such as the Pacific Rim or Europe.
Others invest in certain industries such as technology stocks, 'blue chip' stocks or utilities. A fund that invests in only one specific area will be more volatile and its value can depend too much on specific factors. A fund that invests in several different areas will not be exposed to as great of a risk if a certain region or industry becomes volatile. On the other hand, specialized funds have the advantage of streamlined expertise. A fund that only invests in technology stocks for instance may be volatile but it is best positioned to take advantage of changes in that industry.