The Collar FundTM limits risk through the use of equity collars.
The effect of collaring a stock is to create an upper and lower boundary around that stock. While the stock is collared, any gain or loss is limited by the upper and lower collar boundaries, no matter how much the stock actually rises or falls.
In exchange for the downside protection that The Collar FundTM provides, possible gains are also limited. The Fund is not intended for those who want spectacular returns, but rather for investors seeking a reasonable return with limited risk.
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Mutual Funds involve risk including possible loss of principal. The Fund may invest in small, less well-known companies, which may be subject to more erratic market movements than large-cap stocks; foreign securities, which are subject to currency fluctuations and political uncertainty; and derivative securities, which may carry market, credit, and liquidity risks. These risks may result in greater share price volatility. Investors should carefully consider the investment objectives, risks, charges and expenses of The Collar Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-888-5-COLLAR (1-888-526-5527). The prospectus should be read carefully before investing. The Collar Fund is distributed by Northern Lights Distributors, LLC member FINRA. 0690-NLD-5/29/2009
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