Guggenheim Core Bond Fund Class C (SDICX)

Overview

The investment described aims to provide investors with current income while primarily investing in fixed-income securities that are rated investment grade. This means the fund focuses on securities that are considered to have a lower risk of default, making it a potentially safer investment option for those looking to preserve capital while earning income. The strategy involves allocating at least 80% of the fund's assets into these securities, which may include a mix of bonds and other types of debt instruments. Additionally, the fund has the flexibility to invest up to 20% of its assets in preferred stock, which can offer different risk and return characteristics compared to fixed-income securities.

Products and Services

The following details the primary investment vehicles and securities the fund may utilize:

• Investment Grade Fixed-Income Securities: These are bonds or other debt instruments issued by governments, municipalities, or corporations that are rated as being at low risk of default. Investing in these securities is intended to provide stable income through interest payments, making them a cornerstone of the fund's strategy.
• Closed-End Funds (CEFs): The fund may gain exposure to its target securities through investments in closed-end funds. CEFs are pooled investment funds with a fixed number of shares, trading on stock exchanges, often focusing on specific sectors or asset types, including fixed-income securities.
• Exchange-Traded Funds (ETFs): Similar to CEFs but with shares that trade on open exchanges throughout the trading day, ETFs offer liquidity and flexibility. The fund may invest in ETFs to easily gain exposure to a diversified portfolio of investment grade fixed-income securities.
• Other Mutual Funds: By investing in other mutual funds, the fund can access a broad range of fixed-income securities managed by professional fund managers. This approach allows the fund to diversify its investments further and manage risk.
• Preferred Stock: Up to 20% of the fund's assets may be invested in preferred stock, which provides a fixed dividend return. Preferred stocks are considered a hybrid between a stock and a bond and can offer higher yield opportunities compared to traditional fixed-income securities, albeit with potentially higher risk.