Understanding Investment Types

While there are many different types of investments, some of the most common include stocks, bonds and cash.

Stocks may offer the greatest potential for investment appreciation and possibly one of the best hedges against inflation, but the risks are generally greater that with other types of investments.

Bonds represent a loan or debt owed to the investor and typically pay a fixed rate of interest for a set period of time. This income may help offset stock market volatility or provide a means to meet current expenses. Bond values fluctuate with changes in interest rates.

Cash and money market instruments offer stability and asset protection. Money market funds pay dividends that generally reflect short-term interest rates. They attempt to keep their net asset value (NAV) at a constant $1.00 per share—with only the yield moving up and down.

An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Yields will fluctuate, and although the fund seeks to preserve the value of your investment as $1.00 per share, it is possible to lose money by investing in the fund.

Before investing in a mutual fund, consider its investment objectives, risks, charges and expenses carefully. The prospectus, which contains this and other information about the mutual fund, can be obtained by contacting Legend Equities Corporation. Please read the prospectus carefully before you invest or send money.