Principal Risks of Investing in the Real Estate Fund: Any investment involves risk. The risks associated with an investment in the Real Estate Fund include:

 

• The cyclical nature of the real estate industry subjects real estate and real estate related securities held by the Real Estate Fund to any market or economic condition, such as changes in real estate values, interest rates, cash flow of underlying real estate assets and occupancy rates, that may affect the value of real estate (up or down). 

 

• REIT securities may be more volatile in price than the securities of larger market capitalization companies. 

 

• Mortgage-backed securities are subject to prepayment or non-payment on the underlying mortgage. 

 

• Investment-grade taxable municipal obligations may be downgraded after the Real Estate Fund invests in them. In addition, their prices will fall as interest  rates rise, and rise as interest rates fall. 

 

• Short-term investments carry the risk that a greater rate of return may have been earned on an investment more consistent with the Real Estate Fund’s  investment objectives. Their prices will fluctuate as interest rates fluctuate.

 

• The Real Estate Fund concentrates in real estate and real estate related securities and the real estate sector may underperform in comparison with other  investment sectors. 

 

• The stocks purchased by the Real Estate Fund may not appreciate in value as the Fund’s investment adviser, Spirit of America Management Corp. (the  “Adviser”), anticipates. 

 

• The potential loss of your investment in the Real Estate Fund if the Real Estate Fund depreciates in value. 

 

• Investing in MLPs involves risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between the MLP and the MLP’s general partner, cash flow risks, dilution risks and risks related to the general partner’s limited call right, as described in more detail in the prospectus. Energy infrastructure companies are subject to risks specific to the industry they serve, including fluctuations in commodity prices, reduced volumes of oil or natural gas, reduced demand for the product, depletion of natural gas or oil reserves, changes in regulations, extreme weather and changes in interest rates. Potential investors should consult the prospectus for further information.

 

There are risks inherent in investing. Past performance is no guarantee of future results.

Offering by prospectus only. Investors are advised to consider the Fund’s investment objectives, risks, charges and expenses before investing.

The prospectus contains this and other information about the investment company. Read the prospectus carefully before you invest or send money.

 

Neither the information, nor any statement expressed or implied herein, constitutes solicitation by David Lerner Associates, Inc. for the purchase or sale of any securities. For complete information regarding performance data current to the most recent month end and to obtain a prospectus, contact:
David Lerner Associates, Inc., 477 Jericho Turnpike, P.O. Box 9006, Syosset, New York 11791-9006, 1-800-367-3000. Member FINRA & SIPC.

 

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