Investors beware, the complexity of the Oppenheimer Steelpath MLP Income Class A fund makes it unsuitable for most investors.
This fund aims to generate a high level of inflation-protected current income by investing at least 90% of net assets in the equity securities of larger, more liquid energy Master Limited Partnership’s (MLP’s), the majority of whose revenue is generated from energy industry activities.
In order to reduce risk, financial advisors are required to diversify investment objectives based on age, income, net worth and investment experience. Recommending the Oppenheimer Steelpath MLP Income Class A fund can over-concentrate investor exposure to one industry, in this case oil and gas which is particularly dependent on volatile global supply and demand.
This type of investment can be risky for the typical investor and is better suited for institutional, wealthy and sophisticated retail investors.
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