The Daily Income Fund (HDIXX) is a money market fund. It carries the lowest risk of all the Homestead Funds and is suitable for conservative investors. The fund’s share price is expected — although not guaranteed — to remain constant at $1.00. The level of dividend income earned will fluctuate with changes in short-term interest rates.
The fund invests in debt securities that are obligations of the U.S. government, its agencies and instrumentalities and accordingly are backed by the full faith and credit of the United States (e.g., U.S. Treasury bills) or by the credit of a federal agency or government-sponsored entity (e.g., FannieMae and Freddie Mac mortgage-backed bonds).
|Inception||November 19, 1990|
|Asset Allocation||Money Market|
|Morningstar Category||Money Market-Taxable|
|Lipper Classification||U.S. Government Money Market|
|Expense Ratio||0.69% (Net 0.15%) (12/31/15)|
|Median Expense Ratio for Peer Group||0.51% (12/31/15)|
|Minimum for Initial Purchase||$500 / $200 IRA|
The expense ratio shows the percentage of fund assets deducted annually to cover operating costs. For some funds, the investment advisor has agreed voluntarily or contractually (for at least the current fiscal year) to waive or reimburse a portion of expenses. The net expense ratio is the expense ratio minus the portion of expenses waived or reimbursed. Please see the current prospectus for additional details. The peer ratio is according to Morningstar Direct, 2015, based on each fund’s Morningstar classification.
Money Market Portfolio Manager, Fixed-Income Analyst and Registered Representative
You could lose money by investing in the Daily Income Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
Investments in fixed-income funds are subject to interest rate, credit and inflation risk. Interest rate risk is risk that a change in rates will negatively affect the value of the securities in the Fund’s portfolio.