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Aggressive growth funds focus on speculative companies with high growth potential but carry high volatility. Growth funds are less aggressive. Balanced funds mix bonds and stocks, and bond funds focus on income. Suitability and fund classification are emphasized throughout the Series 6 exam.

UGMA/UTMA accounts are custodial accounts that allow an adult to manage investments until the minor reaches majority age. IRAs are individual accounts, JTWROS are joint accounts between adults, and trust accounts may be set up for minors but require a trustee under separate legal arrangements. Series 6 candidates must distinguish custodial accounts for regulatory compliance.

Fixed annuities provide a guaranteed rate, which does not adjust for inflation. This exposes investors to purchasing power risk. Stocks and variable annuities can provide growth, while TIPS adjust for inflation. Recognizing product risks is essential for Series 6.

Series 6 representatives are limited to mutual funds, variable contracts, UITs, and similar packaged products. They cannot handle margin or options accounts. Margin accounts involve borrowing funds and trading securities, which is outside Series 6 registration.

403(b) plans are tax-sheltered annuities offered to employees of schools, churches, and nonprofits. 401(k) plans are for private-sector employees. SEPs are for small businesses, and Roth IRAs are individual accounts. Plan distinctions are common exam material.