Diversify Your Investments

The old adage about "not putting all of your eggs in one basket" is especially true when it comes to investing. Diversification means spreading your investments among different asset classes, such as stocks, bonds and cash equivalents. AFI's lifestyle fund (AARP Aggressive Fund, AARP Moderate Fund, AARP Conservative Fund, AARP Income Fund, AARP Money Market Fund) have been designed to provide diversification in a single mutual fund.

Reducing risk

If your investments are diversified, you may increase your chances of owning investments that may rise in value. Just as important, however, diversifying your portfolio may help lessen the impact of investments that lose value. However, diversification doesn't eliminate the risk of experiencing investment losses.

Index funds* can help you diversify

AFI's lifestyle funds have a high degree of diversification because they track a variety of broad market indexes. For example, the MSCI U.S. Investable Market 2500 Index** contains about 2,500 different stocks. However, the underlying portfolios will not be able to invest in every security in their indexes until they grow to an asset size that makes such purchases cost effective.

*Indexes are not available for investment and do not reflect fees, brokerage commissions or other expenses of investing.

**The MSCI US Investable Market 2500 Index represents the investable universe of companies in the US equity market. This index targets for inclusion 2,500 companies and represents, as of October 29, 2004, approximately 98% of the capitalization of the US equity market.

The mutual funds described in this site are sold only to U.S. residents.

An Investment in the Funds involves risk, including possible loss of principal. Please consider the investment objectives, risks, charges and expenses of the AARP Funds carefully before investing. The prospectus contains this and other important information about the Funds. To get a prospectus containing this and other information, click here (PDF) or call 1-866-218-6142. Read it carefully before you invest.

While AARP has licensed the use of its name to AARP Funds and endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is an investment adviser and a subsidiary of AARP.

The Financial Advisors are registered representatives of ALPS Distributors, Inc., a registered broker-dealer, and as investment adviser representatives of AARP Financial Inc., an investment adviser. AARP Financial Inc. offers investment advisory services and is not affiliated with ALPS Distributors, Inc.

AARP Funds are distributed by ALPS Distributors, Inc.