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FEDERATED PRIME CASH SERIES

Investor Goal

The fund seeks to provide investors with a high level of current income, a high quality portfolio and liquidity. The fund pursues its objective through corporate money market securities including commercial paper, repurchase agreements, variable rate instruments and bank instruments.

Fund Features

  • Through investment in corporate securities, the fund offers investors a potentially higher yield than a portfolio of government money market securities.
  • By extending the investment mix to include securities rated in two of the highest short-term rating categories, the fund is able to pursue potentially higher yields.
  • A conservative range helps avoid excessive yield volatility and unnecessary NAV risk.

Holdings

The Fund invests primarily in a portfolio of short-term, high-quality fixed income securities issued by banks, corporations and the U.S. government.

Risks

All mutual funds take investment risks. Therefore, even though the Fund is a money market fund that seeks to maintain a stable NAV, it is possible to lose money by investing in the Fund. The Shares offered by this prospectus are not deposits or obligations of any bank, are not endorsed or guaranteed by any bank and are not insured or guaranteed by the US government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.

General

The Fund is a money market fund that seeks to maintain a stable net asset value (NAV) of $1.00 per Share. The Fund?s investment objective is current income consistent with stability of principal and liquidity. While there is no assurance that the Fund will achieve its investment objective, it endeavors to do so by following the strategies and policies described in this prospectus.

Expenses

Total Actual Annual Fund Operating Expenses are 1.35%.

Taxes

The Fund sends an annual statement of your account activity to assist you in completing your federal, state and local tax returns. Fund distributions of dividends and capital gains are taxable to you whether paid in cash or reinvested in the Fund. Dividends are taxable as ordinary income; capital gains are taxable at different rates depending upon the length of time the Fund holds its assets.

Fund distributions are expected to be primarily dividends. Redemptions are taxable sales. Please consult your tax adviser regarding your federal, state and local tax liability.

Prospectus

Before deciding to invest, you should carefully read the prospectus which contains more complete information.

Click here for the html version of the prospectus.
Click here for the pdf version of the prospectus


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