Part 4 examines some alternatives to mutual funds that have emerged only recently. Prior to their emergence, investors had little in the way of effective choices if they determined that mutual funds were not doing the job for them.
Make no mistake, these alternatives are still small items relative to the assets invested in mutual funds. Most investors continue to use mutual funds to accomplish whatever goals they have set. Nevertheless, these alternatives have attracted considerable press attention and investor interest. Assets invested in them might in aggregate be small relative to mutual fund assets, but the growth rates for these assets in only a short time are quite high.
Investors are using these alternatives today for a variety of purposes. Smart investors will learn about them and decide how they might play a role in their investment situations.
