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Mutual Funds

A mutual fund is an investment company that pools money from shareholders to invest in a diversified portfolio of securities. When you invest in a mutual fund, you are purchasing shares of that fund. Each share represents a proportionate ownership in the fund's underlying securities.

Mutual funds are managed by professionals who employ an investment strategy to meet the objectives stated in the prospectus. The professionals choose investments based upon the mutual fund's goal–growth, current income, and so on. The funds are generally well diversified to offset potential losses.

Investing in a mutual fund, instead of buying individual stocks or bonds directly, is a good way to spread out your investment risk and lower your costs. (Since mutual funds buy and sell large amounts of securities at a time, costs are usually lower than what you would pay if you bought securities individually.)

Why Mutual Funds?
Mutual funds offer investors many advantages that individual securities do not.

 Share Classes
Most mutual funds are offered in different share classes. This can enable shareholders to choose the type of fee structure that best suits their particular needs.
Types of Mutual Funds
Mutual funds can invest in a wide variety of investments, including stocks, bonds, and money market instruments.

 Distributions and Taxes
Mutual funds may be required to pay both dividends and capital gains to their shareholders. These distributions may have tax implications.
Understanding Fees, Expenses, and Commissions
Mutual funds' costs can have a significant impact on returns. Funds can offer discounts on front-end sales charges or loads for larger investments.		  
 
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Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus contains this and other important information about the fund. Contact your financial professional for a prospectus and read it carefully before investing.

An investment in our money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds.

Mutual fund investing involves risks. The investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than the original cost. Keep in mind that asset allocation and diversification do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. Prudential Fixed Income Management and Prudential Real Estate Investors are units of Prudential Investment Management, Inc (PIM). Quantitative Management Associates, Jennison Associates, and PIM are registered investment advisors and Prudential Financial companies. Prudential Investments, Prudential Financial, the Rock Prudential logo, Jennison Associates, and Jennison are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.

Mutual Funds: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.

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