Giant 5 Funds will attempt to gain and maintain 20% exposure to Bonds.
Bonds
Bonds are where corporations and governments borrow your money and pay you a set interest rate
They are also Fixed income securities of domestic and foreign issuers. For example, government bonds, corporate bonds, municipal bonds, inflation protected bonds, and foreign issuer bonds.
While bonds traditionally earn lower returns than stocks, that does not mean there isn't a place in your portfolio for bonds. Giant 5 Funds attempts to allocate 20% of the portfolio to Bonds for the following reasons:
Diversification - Bonds tend to be less volatile than stocks and can therefore stabilize the value of your portfolio during times when the stock market struggles. Interest Rate Diversification: Many investors also have debt on their homes or other assets that are tied to interest rates. Bonds give investors an interest rate hedge Consistent Income - Unlike stock dividends, coupon payments are consistently distributed at regular intervals. Taxes - Payments from some bonds are exempt from federal taxes. For individuals in high tax brackets, these investments are often an excellent vehicle for their portfolio .
You should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. For a prospectus, which contains this and other information about the Giant 5 Funds,
call 1-888-5GIANT5 or click here to download a copy.
Please read it carefully before investing.
