THE FUND'S OBJECTIVES
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The investment objectives of the fund are stated in their own
section. The title of the section may be "Investment Objectives" or "Investment
Policies" or something similar. The section outlines the fund's investment
philosophy and strategies so that investors know what a fund is seeking and how
it intends to achieve it. The section on objectives tells you what the fund is
seeking to obtain for its shareholders. For example, the objective of an income
fund may state, "The XYZ Bond Income Fund seeks a high level of current income
with a low degree of share-price fluctuation."
The example objective above tells investors these two things:
? The level
of income the fund seeks (high, moderate, or low)
? How stable it wants its shares to stay
Understanding the fund's objectives will help you determine
whether a particular fund fits with your investment strategy.
Our next discussion looks at the section of the prospectus
that tells you who is involved in the handling of your money.