Mutual Fund Objectives

Money Market Mutual Fund
This fund's investments are in safe, short-term debt securities, like government Treasury bills (T-bills) and commercial paper. The fund pays a yield that reflects the short-term interest rates.

US Government or Agency Bond Fund
This fund's investments are in long-term government or agency debt securities, like Treasury bonds (T-bonds). The fund's goal is to receive income from the interest rates of these securities.

Municipal Bond Fund
This fund's investment are in high-grade municipal bonds. The fund's goal is to receive income from the interest rates of these securities.

Balanced Fund
This fund's main objective is preservation of capital. The fund holds a diversity of investment in bonds, preferred stock and common stock.

Income Fund (Debt & Equity)
More conservative Income Funds invest in blue chip stocks that have a high dividend pay-out and bonds that have modest (less risky) interest rates. Less conservative, more speculative, Income Funds invest in a mix of blue chip and speculative stocks and higher-yield (more risky) bonds. Its goal is to receive income through dividends from these securities.

Income Fund (Equity)
This fund invests in common and preferred stock that pays high dividends.

Stock Index Fund
This fund invests in a group of common stocks where the performance closely reflects the performance of one of the market indexes, like the S&P 500 or the Dow Jones Industrial Average.

Income / Growth Fund
This fund has two objectives: invest in high-yield common stocks and established growth stocks.

Growth / Income Fund>
This fund invests in established growth companies with steady dividends with the emphasis placed on growth, rather than income (from dividends).

Growth Fund
This fund invests in newer companies and industries that have a greater potential for capital appreciation and increasing dividend payments.

Aggressive Growth Fund
This fund invests in very speculative companies in emerging industries or countries.

High-Yield Fund (Junk Bond Fund)
This fund's investments are in high-yield (risky) bonds with lower than investment-grade ratings, (rated BB or lower).

International / Global Fund
This fund's investments are in the common stock of foreign companies and/or US companies with a strong international presence.

Specialty / Sector Fund
This fund invests in one industry (i.e. Internet or utility) or in one geographic area (i.e. Germany or Japan).

Hedge Fund
This is a highly leveraged fund that uses some of the most speculative trading strategies, like trading on margin or short selling.