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General investing

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Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Past performance does not guarantee future results.

It is important to know that investing in bonds may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa.

Money Market Funds typically invest in government securities, certificates of deposit, commercial paper of companies, or other highly liquid and lower-risk securities. They attempt to keep their net asset value (NAV) at a constant $1.00 per share — the yield goes up and down. But a money market's per share NAV may fall below $1.00 if the investments perform poorly. While investor losses in money markets have been rare, they are possible.

For more complete information on any mutual fund, clients should be provided the prospectus, and/or if available, the summary prospectus, and should read it carefully. Before investing, they should carefully consider the investment objectives, risks, and charges and expenses of a fund. This and other information can be found in the fund's prospectus and/or, if available, summary prospectus.

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Asset allocation, diversification and rebalancing do not ensure a profit or protect against a loss.

In reference to bond return, risk and default potential, past performance does not assure future results.

Income from investing in municipal bonds is generally exempt from Federal and state taxes for residents of the issuing state. While the interest income is tax-exempt, any capital gains distributed are taxable to the investor. Income for some investors may be subject to the Federal Alternative Minimum Tax (AMT).

Investors in mortgage bonds are subject to the general risks of bond investing, including interest rate risk, investment market risk, and issuer credit risk. In addition, mortgage bondholders assume collateral risk (the risk that the property offered as collateral may not have sufficient liquidation value to support repayment of mortgage principal), legal risk (the risk that the terms of the mortgage may be modified by a court of law), and prepayment risk (the risk that the borrower may unpredictably return some or all of the mortgage principal before it is due).

© 2023 DST Systems Inc. All rights reserved.
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Keep in mind that a systematic investment strategy cannot guarantee a profit or prevent a loss in declining markets. Since such an investment plan involves continual investment in securities regardless of fluctuating price levels, you should consider your willingness to continue purchasing during periods of high or low price levels.

Please also note that all asset classes and market sectors are not in the best interest for all investors. Each investor should select the asset classes and market sectors for them based on their goals, time horizon, liquidity needs and risk tolerance.

Diversification does not ensure a profit or protect against loss in declining markets.

© 2023 DST Systems Inc. All rights reserved.
View transcript (PDF)
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Past performance does not guarantee future results.

© 2023 DST Systems Inc. All rights reserved.
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Understanding Asset Classes  Video 1 of 4 selected
2:39
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Investment Risk  Video 2 of 4
1:30
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Coping with Volatility  Video 3 of 4
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Putting a Value on an Investment  Video 4 of 4
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Investment types

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In reference to bond return, risk and default potential, past performance does not assure future results.

Income from investing in municipal bonds is generally exempt from Federal and state taxes for residents of the issuing state. While the interest income is tax-exempt, any capital gains distributed are taxable to the investor. Income for some investors may be subject to the Federal Alternative Minimum Tax (AMT).

Investors in mortgage bonds are subject to the general risks of bond investing, including interest rate risk, investment market risk, and issuer credit risk. In addition, mortgage bondholders assume collateral risk (the risk that the property offered as collateral may not have sufficient liquidation value to support repayment of mortgage principal), legal risk (the risk that the terms of the mortgage may be modified by a court of law), and prepayment risk (the risk that the borrower may unpredictably return some or all of the mortgage principal before it is due).

© 2023 DST Systems Inc. All rights reserved.
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Mutual funds are not FDIC insured; are not deposits or obligations of, or guaranteed by, any financial institution; and are subject to investment risks, including possible loss of the principal amount invested. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. There are costs and fees associated with the purchase of mutual funds.

© 2023 DST Systems Inc. All rights reserved.
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Investors should beware that when they purchase or sell ETFs, brokerage commissions could become a significant issue if an investor pursues a strategy that involves frequent transactions. If that is the case, they may want to explore closely alternatives offered by mutual fund companies to minimize overall costs.

Please keep in mind that Exchange-Traded Funds are subject to risks similar to those of stocks. Investment returns may fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.

Diversification does not ensure a profit or protect against loss in declining markets.

© 2023 DST Systems Inc. All rights reserved.
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Bond Categories  Video 1 of 3 selected
1:36
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Investing in Mutual Funds  Video 2 of 3
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Investing involves risk. There is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
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Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF).

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp").
Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp.

Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation.

Investment products offered through MLPF&S and insurance and annuity products offered through MLLA:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity


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