Mutual Funds Types
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Understanding the Types of Mutual Funds

Your investment professional can help you select funds that align with your specific circumstances, goals, time frame and risk tolerance. The information below will help you understand the various kinds of mutual funds Nationwide offers.

Before buying shares of a mutual fund, carefully read the prospectus and other materials about the fund. The prospectus provides information about the fund’s objective, principal strategy, investment risks, fees, expenses and other details.

Investing in mutual funds involves risk, including the possible loss of principal. Investors’ shares, when redeemed, may be worth more or less than their original cost.

Alternatives Allocation Fund

This fund provides an alternative to more traditional asset classes, along with different risks and returns. This professionally selected mix of investments may include Treasury Inflation Protected Securities (TIPS), international bonds, high-yield bonds, emerging market bonds, emerging market stocks, commodities and global real estate stocks.

Nationwide Investor Destinations Funds

These funds are named for their level of risk, from conservative to aggressive. They invest in a broadly diversified portfolio of underlying index funds designed to fit the investor's particular risk profile and investment goal.

Equity funds

These funds invest in equity securities, such as common and preferred stock; securities that can be converted into common stock; or securities and other investments with prices linked to the value of common stock.

Some funds invest in securities from small, undiscovered, emerging growth companies − a strategy that can be riskier than investing in established companies but may potentially provide higher returns. Other equity funds invest in large, well-established companies that offer long-term growth potential with less risk potential, although growth is never guaranteed.

Fixed-income funds

These funds invest in securities, such as bonds and other debt in which the issuer is obliged to pay a set interest rate or dividend at specified times.

Index funds

Index funds seek to approximate the returns of a specific market index, such as the S&P 500, by investing in all or a representative group of the same securities. Index funds typically charge lower expenses than actively managed funds. A description of an index fund’s market index is included in the fund prospectus.