The investment pyramid illustrates the risk and potential return of each broad type of investment asset class. As you move up the pyramid, the investment options within each broad asset class provide an increasing opportunity for higher returns. However, with greater return potential comes greater risk.
Be aware that there are also significant differences in risk and return potential among the different categories within the broad asset classes. Refer to the fund prospectus or disclosure statement, as applicable, for information on the investment objectives and risks involved with a particular investment.
Mutual Funds
Mutual funds pool investments in stocks, bonds, and other investments according to a particular strategy to meet a specific objective.
Collective Trusts
Collective trusts are similar to mutual funds and invest in stocks and bonds. However, since collective trusts are not registered with the Securities and Exchange Commission, they are not subject to the same fees, expenses and regulatory requirements as mutual funds. Collective trusts are not available in all plans.
 |
Company StockCommon stock offers shares of ownership in your company. Company stock is not available in all plans. |
 |
Balanced FundsBalanced funds offer a mix of stocks, bonds, and stable value funds with a specific time and/or risk focus, such as conservative, moderate, or aggressive. |
 |
Stock-based FundsStocks are shares in the ownership of a company and carry greater risks than bonds. However, historically, stocks have offered the greatest potential for long-term growth. |
||
 |
Bond-based FundsBonds are issued by corporations or government agencies. Whereas stocks are shares of ownership in a company, bonds are essentially “loans” by investors to corporations or government agencies. You invest in a bond seeking a return on the amount you put in, plus a fixed rate of interest, paid at some set date. |
||
 |
Cash/Stable Value FundsStable value funds are similar to bonds but hold money for much shorter periods. They offer low investment risk, but with low returns. |