annuity is an insurance company contract that can be used for accumulating assets for retirement or as a method of providing an income stream at some future date. Fixed annuities guarantee your principal(based on the claim paying ability of the issuing company) and a fixed rate of return and they are generally considered conservative and stable. A variable annuity's value will fluctuate because it is dependent upon the performance of the underlying sub-accounts managed in the separate account.

In general, an annuity is a contract by which an insurance company agrees to make regular payments. A fixed annuity guarantees principal and a specified interest rate, and may also offer additional amounts based on the claims-paying ability of the issuing company. A variable annuity does not make any guarantees. The returns and value of a variable annuity account will fluctuate based on the investment performance of the underlying securities in its portfolio. See similar questions...

Mutual funds are measured on relative performance ? compared to a benchmark index. Hedge funds are expected to deliver absolute returns ? under all circumstances, even if the indices are down. Mutual funds are not able to effectively protect portfolios against declining markets other than by going into cash or by shorting a limited amount of stock index futures. See similar questions...

The securities in a UIT are professionally selected to meet a stated investment objective, such as growth, income, or capital appreciation. UITs employ a "buy-and-hold" investment strategy: once the trust's portfolio is selected, its securities typically will not be sold or new ones bought, unlike mutual funds. See similar questions...

A mutual fund is a trust that pools the money of several investors and manages investments on their behalf. Legally it is like any other company you know of. Hence, the fund is also called a mutual fund company. The fund company takes your money and like you from other new investors. This is added to the money that's already invested with the fund. Some investors see asset size as an indicator of popularity. A scheme with large assets could be subscribed to by large number of unitholders. See similar questions...