New York, NY – Investors looking to invest in mutual funds are advised to carefully consider the investment objectives, risks, charges, and expenses associated with the funds. It is crucial to obtain a prospectus that provides detailed information about the fund before making any investment decisions. Past performance should not be used as a guarantee for future results.

When it comes to bonds, investors should be aware of the various risks involved, including interest-rate, credit, liquidity, call, and market risks. High yield bonds, in particular, come with increased credit and liquidity risks and are considered speculative due to the issuer’s ability to pay interest and repay principal on time. Municipal income may also be subject to state, local, and federal taxes, along with the potential impact of legislative changes and economic developments on the value of municipal securities.

Asset allocation and diversification are important strategies for investors to consider, as they cannot ensure a profit or protect against losses during market downturns. The Bloomberg US Municipal Bond Index serves as a benchmark for the long-term, investment-grade, tax-exempt bond market performance, reflecting dividends and capital gain distributions for investors.

Duration, liquidity, and basis points are crucial concepts for investors to understand in relation to bond investments. Duration measures the sensitivity of bond prices to changes in interest rates, while liquidity refers to the ease of buying or selling an asset in the market. Basis points are commonly used to measure interest rates and percentage changes in finance.

Investors are reminded that the information provided is for informational purposes only and should not be considered as investment advice. It is recommended to consult with a legal, tax, or financial professional to determine the appropriateness of any investment product or strategy. Market conditions are subject to fluctuation, and projections may not always align with actual results.

Insight North America LLC, a registered investment adviser regulated by the U.S. Securities and Exchange Commission, provides investment advisory services in North America. Insight is a subsidiary of The Bank of New York Mellon Corporation, which includes other global investment managers under the Insight Investment brand. Copyright 2024 © BNY Mellon Securities Corporation.