Aggressive Growth Funds seek maximum capital appreciation (a rise in share price); current income is not a significant factor. Some funds in this category may invest in out-of-the-mainstream stocks, such as those of fledgling or struggling companies, or those in new or temporarily out-of-favor industries. Some of these funds may also use specialized investment techniques such as option writing or short-term trading For these reasons, these funds usually entail greater risk than the overall mutual fund universe.

Balanced Funds generally try to balance three different objectives: moderate long-term growth of capital, moderate income, and moderate stability in an investor's principal. To reach these goals, balanced funds in- vest in a mixture of stocks and bonds.

Corporate Bond Funds seek a high level of income by purchasing primarily bonds of U.S.-based corporations; they may also invest in other fixed-income securities such as U.S. Treasury bonds.

Flexible Portfolio Funds may invest in any one investment class (stocks, bonds, or money market instruments) or any combination thereof, depending on the conditions in each market. Because they do not limit a fund manager's exposure to any one market, these funds provide the greatest flexibility in anticipating or responding to economic changes.

Ginnie Mae or GNMA Funds seek a high level of in-come by investing primarily in mortgage securities backed by the Government National Mortgage Association.

Global Bond Funds seek a high level of income by investing in the debt securities of companies and countries 1 worldwide, including issuers in the United States. The funds' money managers deal with varied currencies, languages, time zones, laws, and regulations, and business customs and practices. Because of these factors, although global funds provide added diversification, they are also subject to more risk than domestic (U.S.) bond funds.

Global Equity Funds seek capital appreciation (a rise in share price) bv investing in securities traded worldwide, including issuers in the United States. These funds operate just like other global and international funds (see above), providing, added diversification but also added risk.

Growth and Income Funds invest mainly in the common stock of companies that offer potentially increasing value as well as consistent dividend payments. Such funds attempt to provide investors with long term capital growth and a steady stream of income.

Growth Funds invest in the common stock of companies that offer potentially rising share prices. These funds primarily aim to provide capital appreciation (a rise in share price) rather than steady income.

High-yield Bond Funds maintain at least two-thirds of their portfolios in non investment-grade corporate bonds (those rated Baa or lower by Moody's rating service and BBB or lower by Standard and Poor's rating service). In return for potentially greater income, high-yield funds present investors with greater credit risk than do higher-rated bond funds.

Income-Bond Funds seek a high level of income by investing in a mixture of corporate and government bonds.

Income-Equity Funds seek a high level of income bv investing primarily in stocks of companies with a consistent history of dividend payments.

Income-Mixed Funds seek a high level of current income by investing in income-producing securities, including both equities and debt instruments.

International Funds seek capital appreciation (a rise in share price) by investing in equity securities of companies located outside the United States. Two-thirds of fund assets must be so invested at all times to qualify for this category.

National Municipal Bond Funds-Long-term invest primarily in bonds issued by states and municipalities to finance schools, highways, hospitals, airports, bridges, water and sewer works, and other public projects. In most cases, income earned on these securities is not taxed by the federal government, and may or may not be taxed by state and local governments. For some taxpayers, a portion of income may be subject to the federal alternative minimum tax.

Precious Metals/Gold Funds seek capital appreciation (a rise in share price) by investing at least two-thirds .of fund assets in securities associated with gold, silver, and other precious metals.

State Municipal Bond Funds-Long-term work just like national municipal bond funds (see above) except that their portfolios primarily contain the issues of one state. For residents of that state, the income from these securities is typically free from both federal and state taxes. For some taxpayers, a portion of income may be subject to the federal alternative minimum tax.

Taxable Money Market Mutual Funds seek the highest income consistent with preserving investment principal. These funds seek to maintain a stable $1.00 share price by investing in short-term money market securities (a portfolio's average maturity must be 90 days or less) of the highest credit quality. Examples of money market securities include U.S. Treasury bills, commercial paper (short-term IOUs) of corporations, and large-denomination certificates of deposit (CDs) of banks. Because of their short-term, high-quality characteristics, money market funds are considered the lower risk mutual funds available.

Tax-exempt Money Market Funds-National seek the highest level of federally tax-free income consistent with preserving investment principal. These funds invest in short-term municipal securities issued by states and municipalities to finance local projects. For some taxpayers, a portion of income may be subject to the federal alternative minimum tax.

Tax-exempt Money Market Funds-State work just like other tax-exempt money market funds (see above) except that their portfolios invest primarily in issues from one state. A resident in that state typically receives income exempt from federal and state taxes. For some taxpayers, a portion of income may be subject to the federal alternative minimum tax.