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MainStay Asset Allocation Funds
Handcrafted Strategies for Your Portfolio |
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It takes a number of essential steps—proven over time and perfected through experience—to turn something as simple as a grape into something as sophisticated as a fine wine. A successful investment strategy is no different, as it combines portfolio manager expertise with time-tested investment principles to help yield the right investment results.
At MainStay Investments, we understand the complexities of creating a comprehensive investment strategy. It's an ongoing process of determining the right investments, keeping track of fluctuating markets, monitoring day-to-day portfolio variations, and making changes when necessary. To help simplify this process, we created MainStay Asset Allocation Funds.
A More Sophisticated Investment Approach
Each Fund utilizes the three time-tested investment principles—asset allocation, diversification, and rebalancing—as essential elements of its strategy. In addition, you gain instant access to several underlying MainStay Funds by investing in just one MainStay Asset Allocation Fund—that means you can benefit from one portfolio encompassing more than one investment style, with one application to complete, one account to open, and one consolidated statement.
No Assembly Required
Asset Allocation
MainStay Asset Allocation Funds are managed according to pre-established allocation parameters that correspond to different risk/reward categories. As you work with your investment professional, you can choose the portfolio that most closely matches your risk tolerance, with the potential to deliver the returns you need to meet your financial goals. Learn more about Asset Allocation.
Diversification
Each MainStay Asset Allocation Fund offers instant diversification, as its underlying portfolio consists of several MainStay Funds, which are chosen by the portfolio manager. Each underlying Fund focuses on a particular market sector or style. In addition, these underlying MainStay Funds hold numerous individual securities, providing greater diversification. Learn more about Diversification.
Rebalancing
MainStay Asset Allocation Funds are monitored daily by the portfolio manager and periodically rebalanced. In doing so, the portfolio manager seeks to maintain the asset class and investment style exposure established for each MainStay Asset Allocation Fund. Learn more about Rebalancing.
About Risk
The Fund's performance depends on the advisor's skill in determining the asset class allocations, the mix of underlying MainStay Funds, as well as the performance of those underlying Funds. The underlying Funds' performance may be lower than the performance of the asset class which they were selected to represent.
Stocks and bonds can decline due to adverse issuer, market, regulatory, or economic developments. High-yield securities carry higher risks and some of the Fund's investments have speculative characteristics and present a greater risk of loss than higher-quality debt securities. These securities can also be subject to greater price volatility.
There are additional risks associated with investing in small-cap securities. Stocks of small companies may be subject to higher price volatility, significantly lower trading volume, and greater spreads between bid and ask prices, than stocks of larger companies. Furthermore, small-cap companies may be more vulnerable to adverse business or market developments and may have more limited product lines than large-capitalization stocks.
Foreign investing may be subject to greater risk than domestic investing. These may include securities markets that are less efficient, less liquid, and more volatile than those in the United States, as well as foreign currency fluctuations and different governmental regulatory concerns.
When interest rates rise, the prices of fixed-income securities in the underlying Funds' portfolios will generally fall. Conversely, when interest rates fall, the prices of fixed-income securities in the underlying Funds' portfolios will generally rise.
Before making an investment in any of these Funds, you should consider all the risks associated with them.
About Fees and Expenses
The term "fund of funds" is used to describe mutual funds, such as the MainStay Asset Allocation Funds (Fund), that pursue their investment objectives by investing in other mutual funds. Your cost of investing in a Fund may be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds. By investing in a Fund, you will indirectly bear fees and expenses charged by the underlying Funds in which the Fund invests in addition to the Fund's direct fees and expenses. In addition, the use of a fund of funds structure could affect the timing, amount, and character of distributions to you and therefore may increase the amount of taxes payable by you.
Securities distributed by NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, NJ 07054.
For more information or a prospectus, call 800-MAINSTAY (624-6782). Investors are asked to consider the investment objectives, risks, and charges and expenses of these investments carefully before investing. The prospectus contains this and other information about the investment company. Please read the prospectus carefully before investing.
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