What are the risks associated with investing in Pax World funds?

Investing in Pax World funds, like any investment, comes with various risks that potential investors should carefully consider. One key risk is market risk, which reflects the potential for losses due to fluctuations in market prices. This means that the value of the funds may decline based on overall market conditions, even if the underlying assets are strong. Another significant risk is sector risk. Pax World funds may focus on specific sectors or industries, such as socially responsible investing. If these sectors underperform relative to the broader market, it could have an adverse effect on the funds' performance. Credit risk also plays a role, particularly if the funds invest in bonds or other forms of debt. If issuers of those debt instruments face financial difficulties, it could lead to defaults and losses for the fund. Liquidity risk is important to consider as well. In some cases, the funds may hold investments that are not easily tradable, which might make it harder for investors to buy or sell shares without affecting their price. Additionally, currency risk may be a factor for funds that invest in international assets. Changes in currency exchange rates can impact the value of investments made in foreign currencies. It is also crucial to be aware of management risk. The performance of the funds is influenced by the expertise and decision-making of the management team behind Pax World. If their strategies do not work as planned, it may lead to undesirable outcomes. Lastly, regulatory risk is present due to changes in laws or regulations that may impact the funds' operations or appeal. Investors are encouraged to perform thorough research and take into account their own risk tolerance before making investment decisions. For more specific information about the risks associated with particular Pax World funds or strategies, one may consult their website for detailed resources and insights.