Principal Risks of investing in the Core Fund
There are inherent risks associated with the Fund’s principal investment strategies. The factors that are most likely to have an effect on a particular Fund’s investment portfolio. They are generally called “principal risks.” They include;
Market risk
The value of the Core fund’s shares rises and falls as the market value of the securities in which the fund invests goes. The value of securities will fluctuate, sometimes significantly and unpredictably. with stocks generally being more volatile than bonds. When you redeem your shares, they will be worth more or but what you paid for them. Only consider investing in the Fund if you are willing to accept the risk that you may lose money.
Interest rate
Investing funds in bonds includes the risk that as interest rates rise, bond prices can fall. In a time of declining interest rates bond prices generally rise. But also bond issuers could decide or prepay the bond and reissue debt at lower interest rates. The longer a bond’s maturity, the more sensitive the bond is to interest rate changes.
Credit risk
Core fund Investing in bonds includes the risk that an issuer will not pay interest or principal when due. Or the issuer may default altogether. If an issuer’s credit quality declines, the value of the issuer’s bonds may also decline.
Foreign investing
Core fund Foreign investing involves risks not associated with other securities. These risks include fluctuations in currency exchange rates. Less public information about securities. Less governmental market supervision, and lack of uniform financial, social, and political standards. Foreign investing heightens the risk of confiscatory taxation, seizure or nationalization of assets. currency controls, or adverse political or social developments that affect investments.
Liquidity
Liquidity risk exists when particular investments are difficult to sell and to value. The core fund may lose money on its investments if sold forcefully. As a result, the Fund may be unable to achieve its goal.