Mutual Funds

2020 Plan Year Information

Mutual Funds

As a Morgan Stanley employee, there are many offers to help you diversify your portfolio and help meet your investment goals, including discounts offered by asset managers when investing in an array of mutual funds from over 150 fund families.

MORGAN STANLEY EMPLOYEE OFFER

Employees and employee related accounts, according to Morgan Stanley’s account linking rules, may purchase mutual fund Class A shares from any of the fund companies available through Morgan Stanley’s Mutual Fund Network without paying a front-end sales charge.

POTENTIAL ADVANTAGES OF MUTUAL FUNDS

A mutual fund combines the money of a large group of investors into a fund in an attempt to achieve a specific objective over time. A portfolio manager manages the portfolio in accordance with the fund’s investment objectives. Mutual funds can achieve greater portfolio diversity than you would typically attain by investing on your own. Since a mutual fund’s portfolio can hold a range of securities, the fund’s overall success typically doesn’t depend on how one or two holdings perform.

TYPES OF MUTUAL FUNDS

There is a variety of mutual fund types, and most fall into one of three categories based on their investment objectives:

  • Money Market funds seek safety of principal by investing in high-quality, short-term securities such as bank certificates of deposit (CDs), US Treasury bills, and commercial paper. They generally aim to provide a steady stream of predictable interest income and typically have lower yields than other types of investments.
  • Fixed Income funds invest in either corporate, government, or municipal debt securities. A debt security is an obligation that typically pays interest on a regular basis, and may be suitable for people who want periodic income payments. Income funds seek higher yields than money market funds and come with greater risks.
  • Equity funds invest primarily in the common stock of public companies. These funds are usually more volatile than Money Market or Fixed Income funds, and may be best suited to less conservative investors seeking more aggressive returns.

For a menu of available mutual funds, speak with a Morgan Stanley Financial Advisor.

DID YOU KNOW

Similar to the employee offer for mutual funds, for 529 College Savings Plans, employees can invest in Class A units/shares without paying a front-end sales charge (see the Plan’s Program Disclosure Statement for more information). Learn more

Investors should carefully consider the investment objectives, risks, charges and expenses of a mutual fund before investing. The prospectus contains this and other information about the mutual fund. To obtain a prospectus, contact a Financial Advisor or visit the mutual fund company’s website. Please read the prospectus carefully before investing.

Click here for important information about this employee benefit plan.

CRC 1727883 (12/2019)

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