FUND TYPE	WHO SHOULD INVEST
EQUITY
Growth funds
These funds primarily invest in companies with a history of rapidly growing earnings and generally higher price-to-earnings ratios and seek long term capital growth.	These investors generally look for high levels of equities exposure, generally have a long time horizon and have a high tolerance for risk and portfolio volatility.
Growth-and-income funds
These funds invest mainly in the common stock of companies with a history of growth and a record of dividend payments. The funds seek a combination of long term capital growth as well as some current income.	These investors generally look for moderately high levels of equities exposure and some limited income opportunities from bond exposure, along with longer time horizons and higher tolerance for risk and portfolio volatility.
Equity funds are subject to market risk and may fluctuate as a result of specific events related to the companies or markets in which the fund invests. Market prices are subject to economic, political or social events. Foreign holdings are subject to currency fluctuations and small cap company securities may be more volatile. Equity funds tend to have large fluctuations in response to changing market conditions.
FUND TYPE	WHO SHOULD INVEST
BALANCED
Balanced funds
These funds will generally invest in a number of different investment types: common stocks, preferred stocks, bonds, and short-term securities and seek a balance between long-term growth of capital and preservation of capital as well as provide some income to shareholders.	These investors generally look for a combination of bonds and equities exposure and may have a moderate time horizon and tolerance for risk and portfolio volatility.
Balanced funds are subject to market risk and interest rate risk and may fluctuate as a result of specific events related to the companies or markets in which the fund invests as well as interest rate changes and credit risk assessments. Market prices are subject to economic, political or social events. Foreign holdings are subject to currency fluctuations and small cap company securities may be more volatile. Balanced funds tend to have somewhat smaller fluctuations in response to changing market conditions than equity funds.
FUND TYPE	WHO SHOULD INVEST
FIXED INCOME / BONDS
Income funds
These funds invest in corporate and government securities or municipal bonds, which are issued by corporations and state or local governments. Some municipal bond funds provide tax-free income. These funds seek to produce current income for shareholders.	These investors generally look for income-oriented investments, usually bond portfolios, but may include some limited equities exposure and may have a short to moderate time horizon and some tolerance for risk and portfolio volatility.
Money market funds
These funds typically invest in short term securities such as commercial paper, certificates of deposit, Treasury bills and other highly liquid and stable securities. Money market funds typically have very low expense ratios and interest is generally credited to shareholders monthly.	These investors generally look for stable investments and may have a short-term time horizon and a lower tolerance for risk and portfolio volatility.
Income/Bond funds are subject to interest rate risk and credit risk and may fluctuate as a result of interest rate changes or specific events related to the issuers of the debt securities. Market prices are subject to currency fluctuations or global economic, political or social events. Income/Bond funds tend to have smaller fluctuations in response to changing market conditions than Balanced or Equity funds.
FUND TYPE	WHO SHOULD INVEST
OTHER FUND TYPES
Target date funds
These funds invest in different securities mixes as the "target" date approaches. Target date funds are designed primarily for retirement purposes. The investor chooses the fund based on when they plan to retire and the fund adjusts the mix of investments as the target date approaches.	These investors generally look for a systematic approach to investing. Because these funds are typically used for retirement, the volatility risk and time horizon will largely be based on the "target date".
Asset Allocation funds
These funds invest in a diverse mix of investments. They attempt to reduce volatility risk through diversification.	These investors generally seek additional diversification through an asset allocation or portfolio approach. The volatility risk and time horizon will largely be based on the type of asset allocation fund chosen by the investor.
Target date funds and Asset Allocation funds are subject to the same market risks and fluctuations as equity funds, balanced funds or income/bond funds depending on the percentage of equities and bonds that make up the fund. Such risks my include market risk, interest rate risk, credit risk and allocation risk. Funds with a higher percentage of equities will tend to have larger fluctuations in response to market conditions as opposed to funds with a higher percentage of bonds.

A Farmers Insurance and Financial Services Agent can assist you in developing a strategy that can help you toward your financial goals.
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COST OF INVESTING

Like all investments, there is a cost associated with investing in a mutual fund. Fees and expenses will vary by investment company and by individual fund. The investment companies that manage the mutual funds provide many services to shareholders. Besides professional money management, they also provide administration services for the fund. Accounting, materials, statements, website services and customer service personnel all contribute to a well-operated mutual fund. The mutual fund charges a fee for these services. It is called a management fee and is typically a small percentage of the total assets of the fund. Shareholders will pay this fee proportionately based on the number of shares they own.

Another type of fee is a 12b-1 fee. This fee pays the broker dealer for assistance in servicing the shareholder accounts. Again, it is typically a small percentage of the total assets of the fund and shareholders pay this fee proportionately based on the value of their accounts.

Lastly, shareholders may pay sales charges for purchasing shares. This charge goes to the distributor and broker dealer and ultimately pays the registered representative for their services. Sales charges differ by fund and type of share the investor purchases.

Share Classes

There are a number of different types of shares an investor can purchase. The decision to purchase a specific share class will often depend on the individual investor's needs and objectives. The mutual fund will charge different fees and expenses depending upon the class of share you choose. Following are the three most common share classes and information on each.

SHARE CLASS	WHO SHOULD BUY
A Shares
A shares are sold with an up-front sales charge. The charge will decline as the amount invested increases. 12b-1 fees tend to be lower than with other share classes. Rights of accumulation may also be available to reduce sales changes	Investors with a long time horizon and/or large lump sum investment or multiple accounts may consider buying an A share.
B Shares
B shares are sold without an up-front sales charge, but carry higher annual expenses for a fixed period (typically eight years). In addition, if shareholders sell shares during the first few years (typically six years), they may be subject to a redemption fee, known as a contingent deferred sales charge (CDSC), which declines over time. Once the CDSC is eliminated, Class B shares often "convert" into Class A shares. When they convert, they will begin to charge the same 12b-1 fees as A shares.	Investors with a long time horizon, small lump sum, generally below $50,000, or monthly investment may consider buying a B share.
C Shares
C shares are sold without an up-front sales charge, but carry higher annual expenses, usually for a fixed period. In addition, if shareholders sell C shares during the first year, they may be subject to CDSC. C shares generally do not convert into Class A shares.	Investors with a short time horizon may consider buying an C share.

A Farmers Insurance and Financial Services Agent can help in developing a strategy for you that meets your individual goals and objectives.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so investors may lose money including lose of principal invested. Purchasers of mutual funds should consider investment objectives, risks, charges and expenses of the investments carefully before investing or purchasing. The prospectuses contain this and other important information. Please contact your Farmers Insurance and Financial Services Agent for prospectuses and read them carefully before purchasing such investments.

Past performance of any investment does not guarantee future results; investment returns will fluctuate so that an owner's shares, when redeemed, may be worth more or less than their original cost.