Glossary
| Term | Definition |
|---|---|
| Market Risk |
The risk that an entire market will decline, reducing the value of the investments in it without regard to other factors. This is also known as Systemic Risk.
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| Market Timing |
An investment philosophy under which investors buy and sell securities in an attempt to profit from short-term price fluctuations.
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| Money Market Fund |
A mutual fund that invests in assets that are easily converted into cash and which have a low risk of price fluctuation. This may include money market holdings, Treasury bills, and commercial paper. Money held in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Money market funds seek to preserve the value of your investment at $1.00 a share. However, it is possible to lose money by investing in a money market fund.
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| Municipal Bond Fund |
A mutual fund offered by an investment company which specifically invests in municipal bonds. Mutual fund balances are subject to fluctuation in value and market risk. Shares, when redeemed, may be worth more or less than their original cost. Mutual funds are sold only by prospectus. Individuals are encouraged to consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.
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