Risk Table - Virtus Income & Growth Fund
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Risk [Text Block] |
| Principal Risks |
Principal
Risks The fund may not achieve its objective(s), and it is not intended to be a complete
investment program. The value of the fund’s investments that supports your share value may decrease.
If between the time you purchase shares and the time you sell shares the value of the fund’s investments
decreases, you will lose money. Investment values can decrease for a number of reasons. Conditions affecting
the overall economy, specific industries or companies in which the fund invests can be worse than expected,
and investments may fail to perform as the subadvisers expect. As a result, the value of your shares
may decrease. Purchase and redemption activities by fund shareholders may impact the management of the
fund and its ability to achieve its investment objective(s). The principal risks of investing in the
fund are identified below (in alphabetical order after the first ten risks).
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| Risk Lose Money [Member] |
If between the time you purchase shares and the time you sell shares the value of the fund’s investments
decreases, you will lose money.
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| Market Volatility Risk |
> Market Volatility Risk: The value of the securities
in the fund may go up or down in response to the prospects of individual companies and/or general economic
conditions. Price changes may be short- or long-term. Local, regional or global events such as war or
military conflict (e.g., Russia’s invasion of Ukraine), geopolitical risk, acts of terrorism, the spread
of infectious illness or other public health issue, recessions, tariffs and other restrictions on trade,
or the threat or potential of one or more such events and developments, could have a significant impact
on the fund and its investments, including hampering the ability of the fund’s portfolio manager(s)
to invest the fund’s assets as intended.
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| Issuer Risk |
> Issuer
Risk: The fund will be affected by factors specific to the issuers
of securities and other instruments in which the fund invests, including actual or perceived changes
in the financial condition or business prospects of such issuers.
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| Equity Securities Risk |
> Equity Securities Risk: The
value of the stocks held by the fund may be negatively affected by the financial market, industries in
which the fund invests, or issuer-specific events. Focus on a particular style or in small or medium-sized
companies may enhance that risk.
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| Large Market Capitalization Companies Risk |
> Large
Market Capitalization Companies Risk: The value of investments in larger companies
may not rise as much as smaller companies, or larger companies may be unable to respond quickly to competitive
challenges, such as changes in technology and consumer tastes.
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| Growth Stocks Risk |
> Growth
Stocks Risk: The fund’s investments in growth stocks may be more volatile
than investments in other types of stocks, or may perform differently from the market as a whole and
from other types of stocks.
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| High-Yield/High-Risk Fixed Income Securities (Junk Bonds) Risk |
> High-Yield/High-Risk
Fixed Income Securities (Junk Bonds) Risk: There is a greater risk
of issuer default, less liquidity, and increased price volatility related to high-yield/high-risk securities
than investment grade securities, and high-yield/high-risk securities are generally considered to be
speculative.
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| Bank Loan Risk |
> Bank Loan Risk: In
addition to the risks typically associated with high-yield/high-risk fixed income securities, bank loans
may be unsecured or not fully collateralized, may be subject to restrictions on resale, may be less liquid
and may trade infrequently on the secondary market. Bank loans settle on a delayed basis; thus, sale
proceeds may not be available to meet redemptions for a substantial period of time after the sale of
the loan.
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| Covenant Lite Loans Risk |
> Covenant Lite Loans Risk:
The lack of financial maintenance covenants in covenant lite loans increases the risk that the fund will
experience difficulty or delays in enforcing its rights on its holdings of such loans, which may result
in losses, especially during a downturn in the credit cycle.
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| Debt Instruments Risk |
> Debt
Instruments Risk: Debt instruments are subject to greater levels of credit and
liquidity risk, may be speculative and may decline in value due to changes in interest rates or an issuer’s
or counterparty’s deterioration or default.
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| Convertible Securities Risk |
> Convertible
Securities Risk: The value of a convertible security may decline as interest
rates rise and/or vary with fluctuations in the market value of the underlying securities. The security
may be called for redemption at a time and/or price unfavorable to the fund.
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| Allocation Risk |
> Allocation Risk: If the fund’s exposure
to equities and fixed income securities, or to other asset classes, deviates from the intended allocation,
or if the fund’s allocation is not optimal for market conditions at a given time, the fund’s performance
may suffer.
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| Counterparty Risk |
> Counterparty Risk:
There is risk that a party upon whom the fund relies to complete a transaction will default.
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| Credit Ratings and Unrated Securities Risk |
> Credit Ratings and Unrated Securities Risk: If
a subadviser is unable to accurately assess the quality of an unrated fixed income security or the credit
rating assigned by a rating agency does not reflect an issuer’s current financial condition or credit
quality, the fund may invest in a security with greater risk than intended, or the securities may be
more difficult to sell than anticipated.
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| Credit Risk |
> Credit
Risk: If the issuer of a debt instrument fails to pay interest or
principal in a timely manner, or negative perceptions exist in the market of the issuer’s ability to
make such payments, the price of the security may decline.
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| Currency Rate Risk |
> Currency
Rate Risk: Fluctuations in the exchange rates between the U.S. dollar
and foreign currencies may negatively affect the value of the fund’s shares.
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| Depositary Receipts Risk |
> Depositary Receipts Risk: Investments in foreign
companies through depositary receipts may expose the fund to the same risks as direct investments in
securities of foreign issuers.
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| Derivatives Risk |
> Derivatives
Risk: Derivatives and other similar instruments (collectively referred
to in this section as “derivatives”) may include, among other things, futures, options, forwards,
and swap agreements, and may be used in order to hedge portfolio risks, create leverage or attempt to
increase returns. Investments in derivatives may result in increased volatility and the fund may incur
a loss greater than its principal investment.
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| Emerging Market Risk |
> Emerging Market Risk: Emerging markets securities
may be more volatile, or more greatly affected by negative conditions, than those of their counterparts
in more established foreign markets. Such securities may also be subject to Sanctions Risk.
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| Equity Linked Notes (ELNs) Risk |
> Equity Linked Notes (ELNs) Risk: When the fund invests in
ELNs, it receives cash but limits its opportunity to profit from an increase in the market value of the
reference benchmark because of the limits relating to the call options written within the particular
ELN. Investments in ELNs often have risks similar to the reference benchmark, which include market risk.
Should the price of the reference benchmark move in an unexpected manner, the fund may not achieve the
anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and
could include the fund’s entire principal investment.
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| Focused Investment Risk |
> Focused
Investment Risk: To the extent the fund focuses its investments on a limited
number of issuers, sectors, industries, geographic regions or portfolio themes, it may be subject to
increased risk and volatility.
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| Foreign Investing Risk |
> Foreign
Investing Risk: Investing in foreign securities subjects the fund to additional
risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information
about the foreign investment; and political, regulatory, economic, and market risk.
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| Income Risk |
> Income Risk: Income received from the fund may vary widely
over the short- and long-term and/or be less than anticipated if the proceeds from maturing securities
in the fund are reinvested in lower-yielding securities.
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| Interest Rate Risk |
> Interest
Rate Risk: The values of debt instruments may rise or fall in response
to changes in interest rates, and this risk may be enhanced for securities with longer maturities.
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| Leverage Risk |
> Leverage Risk: When the fund leverages its portfolio by borrowing
or by engaging in certain types of transactions or instruments, including derivatives, the fund may be
less liquid, may liquidate positions at an unfavorable time, and the volatility of the fund’s value
may increase.
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| Liquidity Risk |
> Liquidity Risk: Certain
instruments may be difficult or impossible to sell at a time and price beneficial to the fund.
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| Redemption Risk |
> Redemption Risk: One or more large shareholders
or groups of shareholders may redeem their holdings in the fund, resulting in an adverse impact on remaining
shareholders in the fund by causing the fund to take actions it would not otherwise have taken. The effects
of taxable gains resulting from large redemptions of fund shares would particularly impact non-redeeming
shareholders who do not hold their fund shares in a tax-advantaged or tax-exempt vehicle. Such large
shareholder redemptions, which may occur rapidly or unexpectedly, may cause a fund to sell portfolio
securities at times when it would not otherwise do so, which may negatively impact the fund’s NAV and
liquidity. In addition, a large redemption could result in the fund’s current expenses being allocated
over a smaller asset base, leading to an increase in the fund’s expense ratio.
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| Sanctions Risk |
> Sanctions Risk: The imposition of sanctions and other similar
measures could cause a decline in the value and/or liquidity of securities issued by or tied to the sanctioned
country and increase market volatility and disruption in the sanctioned country and throughout the world.
Sanctions and other similar measures could limit or prevent the fund from buying and selling securities
(in the sanctioned country and other markets), significantly delay or prevent the settlement of transactions,
and negatively impact the fund’s liquidity and performance.
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| Small and Medium Market Capitalization Companies Risk |
> Small
and Medium Market Capitalization Companies Risk: The fund’s investments
in small and medium market capitalization companies may increase the volatility and risk of loss to the
fund, as compared with investments in larger, more established companies.
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