Mutual Funds

Stock prices fluctuate, and you could lose money. The stocks of smaller companies may be subject to above-average market-price fluctuations. A portfolio with fewer holdings may be subject to greater volatility than a portfolio with a greater number of holdings. The products of technology companies may be subject to severe competition and rapid obsolescence, and technology stocks may be subject to greater price fluctuation, government regulation, and limited liquidity as compared to other investments. There are specific risks associated with global investing, such as currency fluctuations, foreign taxation, differences in financial reporting practices, and rapid changes in political and economic conditions. Because of the special risks associated with investing in securities of emerging market companies, an investment in Seligman Emerging Markets Fund or Seligman Global Smaller Companies Fund should be considered speculative and not appropriate for individuals who require safety of principal or stable income from their investments. Investments in real estate securities may be subject to specific risks, such as risks to general and local economic conditions, and risks related to individual properties. Fixed income securities are subject to interest rate risk, credit risk, prepayment risk, and market risk. High-yield securities are subject to a greater risk of loss of principal and interest than higher-rated, investment grade fixed income securities.

To the extent that a Fund concentrates its investments in municipal securities issued by a single state and its municipalities, specific events or factors affecting a particular state may have an impact on the municipal securities of that state without affecting the municipal market in general.

Mutual Funds

What is a Mutual Fund?

A mutual fund is a company that pools the money of many investors. Professional managers invest this money in a variety of securities according to the fund’s specific objective and strategies. The price of a share in a mutual fund will go up or down based on the value of the underlying portfolio of securities. Every mutual fund must have a prospectus which explains the fund’s objective, the kinds of securities the fund may invest in, risks, and other important information.

Below are some broad categories of mutual funds:

Aggressive Growth funds and Growth funds generally seek long-term capital appreciation by investing in stocks that are expected to experience an increase in earnings.
Value funds generally seek capital appreciation by investing in securities that the fund’s manager believes are selling for less than their actual or potential worth.
Growth and Income funds generally seek a combination of long-term capital appreciation from stocks and current income from dividend-paying stocks or bonds.
Income funds generally seek regular current income, usually by investing in different types of bonds.
Money Market funds generally seek to preserve the investor’s capital, but do not provide long-term growth. (Keep in mind that investments in money market mutual funds are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although such funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.)

Some mutual funds may invest in companies of a particular size (small-, medium-, or large-company) or companies in a particular industry. Funds may be domestic, international (owning stocks or bonds issued by companies or governments outside the US), or global (combining international and US investments).

One reason mutual funds have become so popular is because they offer the advantage of built-in diversification by investing in many different securities. Diversification — spreading your money among many investments, or “not putting all your eggs in one basket” — can reduce the impact on your portfolio of poor performance by any one security. Keep in mind, however, that diversification does not assure a profit or protect against loss in a declining market.

This information is authorized for use only in the case of concurrent or prior delivery of the offering prospectus of the Fund. You should consider the investment objectives, risks, charges, and expenses of a Fund carefully before investing. A prospectus containing information about a Fund (including its investment objectives, risks, charges, expenses, and other information about the Fund) may be obtained here. The prospectus should be read carefully before investing in a Fund.

The Seligman Funds are managed by J. & W. Seligman & Co. Incorporated (Seligman). The Seligman Mutual Funds are distributed by Seligman Advisors, Inc. Seligman Services, Inc. provides client services to Fund shareholders. Seligman Advisors, Inc. and Seligman Services, Inc. are wholly-owned subsidiaries of Seligman.

Distributed by Seligman Advisors, Inc.