Actually there are over twice as many mutual funds with assets of over $100 million than there are publically traded companies. This means that finding you special investment among the 6,843 diversified or sector equity funds won't be easy. But the task isn't as daunting as it seems.

below you will find a chart on the different types of funds, each performing a separate function with the idea that investors have different goals.

Focus on Risk
It is important to remember that volatility tells us nothing about risk, amounting to a statistic that is more probability than fact. The real risk, according to Robert Jeffery is "in holding a portfolio that might not provide its owner...with the cash he requires to make essential outlays."

On a Scale of One to Ten Mutual Fund Rank of Risk

Growth Stock 10 Sector Investing 9.5 Exchange Traded 9.3 Index (Domestic Equity) 6.9 Index (US Diversified) 6.7 Value Stock 6.5 Balanced 5.5 High Yield Bond 4.5 High Grade Corporate Bond 3 Index (Bond) 3 Government Bonds 2.8 Short Term Bond 1.9 Money Market 1 [ Close Window ]