Types of Mutual Funds

How do you choose the type of mutual fund for your investment? Your investment professional can help you find one that meets your investment objectives, investment style and risk tolerance.

Keep in mind that these are general definitions of the types of mutual funds we offer. Before buying a mutual fund, you should carefully read the prospectus and other information specific to the fund you’ve chosen.

Nationwide Target Destination Funds

These funds are target-date asset allocation funds that help you prepare for retirement or another investment goal based on a time horizon. Through the ease of a single fund selection, you invest in a broadly diversified portfolio of underlying mutual fund investments that gradually becomes more conservative as it approaches its target date.

When you buy one of these funds, you’ll select a product with a target date closest to the year of your retirement or your investing goal.

Nationwide Investor Destinations Funds

We offer this series of asset allocation funds that include investment risk indicators in the funds’ names.

Through the ease of a single fund selection, you invest in a broadly diversified portfolio of underlying index funds designed to fit a stated risk profile and investment goal.

Equity Funds

Equity funds invest in equity securities, including common stock, preferred stock, securities that can be converted into common stock or securities (or other investments) with prices linked to the value of common stock.

Some funds invest in equity securities from small, undiscovered, emerging growth companies. Doing so can be riskier than investing in established companies, but provides potentially higher returns.

Other funds invest in 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, including bonds and other debt securities that represent an obligation by the issuer to pay a specified interest rate or dividend at specified times.

Index Funds

These funds invest in assets whose performance is expected to approximate the performance of a certain market index before fund expenses are deducted. The market index is included in the fund name or the fund prospectus. 

Disclosure
Investments in each Nationwide Target Destination Fund are subject to risks related to the Fund’s allocation strategy. In general, a Fund with a later target date is expected to be more volatile, and thus riskier, because of its greater allocation to equity securities than a Fund with an earlier target date. A Fund at its target date through the next 20 years is expected to be less volatile than a Fund in its “pre-target date” stage. The Nationwide Retirement Income Fund is expected to be the least volatile of the Funds due to the Retirement Income Fund’s further reduced exposure to equity securities. Because a Fund’s allocation may not match a particular investor’s retirement goal and an investor may have different retirement needs than anticipated, there is no guarantee that an investor will have the desired level of retirement assets available. Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations. Each Fund’s underlying funds may be subject to specific risks such as those associated with small companies or international stocks.

Investments in each Nationwide Investor Destinations Fund are subject to different levels of risk, based on the types and sizes of its underlying asset class allocations. Each Fund’s underlying funds may be subject to specific investment risks such as those associated with small companies, international securities, initial public offerings, bonds and short-term instruments.

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