Common use of Mutual Fund As Eligible Investments Clause in Contracts

Mutual Fund As Eligible Investments. An investment in a Mutual Fund that is an Eligible Investment involves investment risks, including possible loss of principal. In addition, growth in the value of a Mutual Fund that is an Eligible Investment is not guaranteed or protected. A prospectus containing detailed information about each Mutual Fund that is an Eligible Investment available for investment of your Xxxxxxxxx ESA Account must be furnished before investment. The method for computing and allocating annual earnings is set forth in the prospectus. The prospectus also details the costs and expenses incurred by being invested in a particular Mutual Fund that is an Eligible Investment. Such costs and expenses reduce the yield from the Mutual Fund that is an Eligible Investment.