Stock Funds
Aggressive Growth Funds seek maximum capital growth; current income is not a significant factor. These funds invest in stocks out of the mainstream, such as new companies, companies fallen on hard times, or industries temporarily out of favor. They may use investment techniques involving greater than average risk.
Growth Funds seek capital growth; dividend income is not a significant factor. They invest in the common stock of well-established companies.
Growth and Income Funds seek to combine long-term capital growth and current income. These funds invest in the common stock of companies whose share value has increased and that have displayed a solid record of paying dividends.
Precious Metals/Gold Funds seek capital growth. Their portfolios are invested primar-ily in securities associated with gold and other precious metals.
International Funds seek growth in the value of their investments. Their portfolios are invested primarily in stocks of companies located outside the parent country.
Global Equity Funds seek growth in the value of their investments. They invest in stocks traded worldwide, including those in the U.S.
Income-Equity Funds seek a high level of income by investing primarily in stocks of companies with good dividend-paying records.
Bond and Income Funds
Flexible Portofolio Funds allow their money managers to anticipate or respond to changing market conditions by investing in stocks or bonds or money market instruments, depending on economic changes.
Balanced Funds generally seek to conserve investors’ principal, pay current income, and achieve long-term growth of principal and income. Their portfolios are a mix of bonds, pre-ferred stocks, and common stocks.
Income-Mixed Funds seek a high level of income. These funds invest in income-producing securities, including stocks and bonds.
Income-Bond Funds seek a high level of current income. These funds invest in a mix of corporate and government bonds.
Government Income Funds seek current income. They invest in a variety of government securities.
GNMA Funds seek a high level of income. The majority of their portfolios is invested in mortgage securities.
Global Bond Funds seek a high level of income. These funds invest in debt securities of companies and countries worldwide, including those in the U.S.
Corporate Bond Funds seek a high level of income. The majority of their portfolios is invested in corporate bonds.
High-yield Bond Funds seek a very high yield, but carry a greater degree of risk than corporate bond funds. The majority of their portfolios is invested in lower-rated corporate bonds.
National Municipal Bond Funds seek income that is not taxed by the federal government. They invest in bonds issued by states and municipalities to finance schools, highways, hospitals, bridges, and other municipal works.
State Municipal Bond Funds seek income that is exempt from both federal tax and state tax for residents of that state. They invest in bonds issued by a single state.
Money Market Funds
Taxable Money Market Funds seek to maintain a stable net asset value. These funds invest in the short-term, high-grade securities sold in the money market, such as U.S. Treasury bills, certificates of deposit of large banks, and commercial paper. The average maturity of their portfolios is limited to 90 days or less.
Tax-exempt Money Market Funds National seek income that is not taxed by the federal government with minimum risk. They invest in municipal securities with relatively short maturities.
Tax-exempt Money Market Funds State seek income that is exempt from federal tax and state tax for residents of that state. They invest in municipal securities with rela-tively short maturities issued by a single state.