Why Playing It Safe Isn't Always Best in the Stock Market

Moderation may be wise in many undertakings but always playing it safe when investing isn't the right answer.
If you invest too conservatively, your money might not earn enough to keep ahead of inflation. To afford the future's growing price tag, many people choose aggressive growth small company stocks.

Because companies tend to grow more rapidly when they're young, small company stocks hold the potential for above-average growth. In return for this potential, these stocks have historically experienced a higher rate of failure and more volatility than average.

Stocks capitalized at less than $1 billion-the product of their total shares times share price-are considered small. These small company stocks, traded over the counter at NASDAQ, make up about 90 percent of all stocks on the market.

A small company mutual fund, such as Federated Small Cap Strategies Fund, diversifies your money among stocks of small companies, usually found in dynamic sectors of the economy.

For more complete information on the Federated Small Cap Strategies Fund, ask for a prospectus from your investment professional or call Federated Investors at 1-800-341-7400. Please read it carefully before investing. Federated funds are distributed by Federated Securities Corp

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