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Mutual Funds
Mutual Funds
1. Growth potential
As the chart below illustrates, the long-term growth
of stocks and bonds has historically been greater
than that of six-month certificates of deposit (CDs).*
11.80
12%
Average Annual Total Returns
10
7.56
8
5.97 5.91
5.13
6
4.07
4
* CDs purchased for a period longer than six months can provide a
higher rate of return.
$100,000 90,627
80,000
60,000
36,610
40,000 23,163
15,442
11,589
20,000 7,721
1 Please note that mutual funds have the potential to lose value.
2 Please consult your tax advisor for information about capital gains
and dividends.
Moderate Portfolio
The moderate investor is less sensitive to short-term
volatility than the conservative investor and is interested
in receiving steady investment income and preserving
capital.
Noninvestment Grade Large-Cap Blend
Bonds (Tax Free) 17.5%
10.0%
Investment Grade Mid-Cap Blend
Bonds (Tax Free) 10.0%
15.0%
Small Cap
Short-Term 10.0%
Investment Grade
Bonds (Taxable) International/
5.0% Global Blend
Intermediate-Term 17.5%
Investment Grade
Bonds (Taxable) Commodities
10.0% 5.0%
Growth Portfolio
The growth investor is typically seeking higher relative
return. Because he or she usually has a relatively long
time horizon and high risk tolerance, the growth investor
is not as concerned about short-term volatility.
Noninvestment
Grade Bonds
Commodities (Tax Free)
5.0% 5.0%
Large-Cap
International/ Blend
Global Blend 35.0%
25.0%
Mid-Cap Blend
Small Cap 5.0%
25.0%