Types of Mutual Funds

There are funds that fit just about any investment need:

AGGRESSIVE GROWTH FUNDS
seek maximum capital gains as their investment objective. These funds may invest in stocks that are somewhat out of the mainstream – such as smaller, lesser-known companies that managers believe possess dynamic potential. Current income isn’t a significant factor for shareholders in these funds.

GROWTH FUNDS
typically invest in stocks and seek capital growth through the price appreciation of the securities held in their portfolio. Their primary aim is to produce an increase in the value of their investments rather than a flow of dividends.

GROWTH AND INCOME FUNDS
invest primarily in the common stock of companies with longer track records. These funds have the expectation of a higher share value but also maintain a solid record of paying dividends.

BALANCED FUNDS invest in both stocks and bonds. They emphasize the growth potential of stocks as well as the relative stability of income from bonds.

INCOME FUNDS
seek a high level of current income, which is often achieved by investing in the common stock of companies with good dividend-paying records. They may invest in such fixed-income securities as corporate and government bonds. Some income funds maintain more aggressive objectives than others: High-yield corporate bonds have potential to produce greater income than government bonds. In turn, government bonds are considered less volatile than high-yield bonds.

MUNICIPAL BOND FUNDS
invest in bonds issued by local governments – such as cities and states – which use the money to build such public entities as schools. Income earned from these securities is usually federally tax-exempt for most shareholders.

MONEY MARKET FUNDS
participate in short-term investment instruments that are considered the safest, most stable type of securities available. By investing in such funds, shareholders can earn current money market interest rates and maintain asset liquidity. In addition, these funds may specialize by investing in tax-exempt money market securities.

* Mutual fund performance will vary. An investor’s shares, when redeemed, may be worth more or less than original cost. Higher-yielding bonds have a great risk of price fluctuation and loss of principal and income than U.S. Government Securities, which guarantee repayment of principal and interest if held to maturity.

Preferred Securities Group, Inc.
5301 N. Federal Highway, Suite 150
Boca Raton, Florida 33487
1-800-909-9150
Tel. (561) 998-2170
Fax (561) 998-2177
Email: info@preferredsecurities.com

Member N.A.S.D., S.I.P.C.
Florida