Yield and share price will vary with interest rate changes. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term.
Unlike CDs, an investment in a money market fund or bond fund is not insured or guaranteed by the FDIC or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.
**Based on cumulative total return, 30 out of 59 (51%), 22 out of 48 (46%), 17 out of 46 (37%), and 33 out of 39 T. Rowe Price bond and money market funds (including all share classes and excluding funds used in insurance products) outperformed their Lipper average for the 1-, 3-, 5-, and 10-year periods ended 12/31/13, respectively. Not all funds outperformed for all periods. (Source for data: Lipper Inc.)