Risks of Investing in Invesco Balanced-Risk Allocation Fund
Derivatives – The fund may use derivatives as a substitute for purchasing the underlying asset or as a hedge in an effort to reduce exposure to risks. Use of derivatives involves risks similar to, as well as risks different from, and possibly greater than, the risks associated with investing directly in securities or more traditional instruments. Derivatives may also be more difficult to purchase or sell or value than other investments and is subject to counterparty risk – the risk that the other party will not complete the transaction with the fund. A fund investing in a derivative could lose more than the cash amount invested.
Leverage – The fund may use enhanced investment techniques such as leverage. Leveraging entail risks such as magnifying changes in the value (both positive and negative) of the portfolio's securities.
Interest Rate Risk – Interest rate risk refers to the risk that bond prices generally fall as interest rate rise and vice versa.Credit Risk – Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health. Such deterioration may lead to the issuer's inability to honor its contractual obligation, include timely payments of interest and principal. Foreign & Developing Markets Securities Risk – Foreign and Developing Markets securities have additional risks, including exchange rate changes, political and economic upheaval, relative lack of information, relatively low market liquidity, and the potential lack of strict financial and accounting controls and standards. Commodity Risk – The fund or the Subsidiary may invest in commodity-linked derivative instruments that may be subject to greater volatility than investments in traditional securities. Subsidiary Risk – The fund is indirectly exposed to the risks associated with the Subsidiary's investments. The Subsidiary is not registered under the 1940 Act is may not be subject to all the investor protections under the Act. Accordingly, the fund will not have all the protections offered to investors in registered investment companies.