As market conditions change, the Value Line Asset Allocation Fund shifts its assets among stocks, bonds and money market securities. And, unlike many mutual funds, the Fund has no limits on the percentage of assets that can be invested in each class at any given time.

The Value Line Asset Allocation Fund fluctuates around an average mix of 55% stocks, 35% bonds, and 10% money market instruments, including cash.

If conditions are such that interest rates are low, real rates on bonds, net of inflation, are high, and the Value Line stock market model indicates that equity prices are undervalued, the Fund may increase the percentage of its total assets in stocks.

When economic and market conditions shift so that interest rates are rising, expected total return from equities is poor, real rates on bonds are low, and short-term interest rates are high, the Fund may take a defensive position with more in money market instruments and a smaller mix of stocks and bonds.

Diversification of assets can help maximize returns while minimizing risk, by allowing you to take advantage of profit opportunities in different market sectors without being dependent on any one type of security. The Value Line Asset Allocation Fund makes diversification simple by providing an instant portfolio of stocks, bonds and money market securities.

Institutions have long depended on professional money managers to determine when to shift assets from one class to another. But most individual investors, even those invested in a family of funds, must switch funds to switch asset classes; and so the exchange often goes unmade.

The Value Line Asset Allocation Fund managers make prompt decisions for the Fund's investors using data from the same Value Line analysts widely acclaimed for their quality research and the same proprietary computer models that we use for our conservative corporate and institutional clients.