LIFE SERIES FUND - First Investors

Principal Investment Strategies: The Fundinvests primarily in high-quality money marketinstruments that are determined by the Fund’sAdviser to present minimal credit risk,including but not limited to commercial paper,short-term corporate bonds and notes, floatingand variable rate notes, U.S. Treasurysecurities and short-term obligations of U.S.Government-sponsored enterprises (some ofwhich are not backed by the full faith andcredit of the U.S. Government).The Fund’s portfolio is managed to meetregulatory requirements that permit the Fundto maintain a stable net asset value (“NAV”) of$1.00 per share. These include requirementsrelating to the credit quality, maturity, liquidityand diversification of the Fund’s investments.In buying and selling securities, the Fund willconsider its own credit analysis as well asratings assigned by ratings services.Principal Risks: Although the Fund tries tomaintain a $1.00 share price, it may not beable to do so. It is therefore possible to losemoney by investing in the Fund. Here are theprincipal risks of investing in the Fund:Credit Risk. There is a risk that the value of amoney market instrument will decline if thereis a default by or a deterioration in the creditquality of the issuer or a provider of a creditenhancement or demand feature. This couldcause the Fund’s NAV to decline below $1.00per share.Credit risk also applies to securities issued bythe U.S. Government and by U.S. Governmentsponsoredenterprises that are not backed bythe full faith and credit of the U.S. Government.The securities issued by U.S. Governmentsponsoredenterprises are supported only bythe credit of the issuing agency, instrumentalityor corporation.Interest Rate Risk. Like the values of otherdebt instruments, the market values of moneymarket instruments are affected by changes ininterest rates. When interest rates rise, themarket values of money market instrumentsgenerally decline. The Fund may be subject toa greater risk of rising interest rates duringperiods of historically low interest rates. Thiscould cause the Fund’s NAV to decline below$1.00 per share.Liquidity Risk. The Fund may be unable tosell a security promptly and at an acceptableprice, which could have the effect ofdecreasing the overall level of the Fund’sliquidity. Market developments may cause theFund’s investments to become less liquid andsubject to erratic price movements, which mayhave an adverse effect on the Fund’s ability tomaintain a $1.00 share price.Market Risk. The prices of, and the incomegenerated by, the money market instrumentsheld by the Fund may decline in response tocertain events, such as general economic andmarket conditions, regional or globaleconomic instability, interest rate fluctuations,and those events directly involving the issuers.Adverse market events may lead to increasedredemptions, which could cause the Fund toexperience a loss when selling securities tomeet redemption requests by shareholders.Yield Risk. The yields received by the Fund onits investments will generally decline asinterest rates decline.An investment in the Fund is not a bankdeposit and is not insured or guaranteed bythe Federal Deposit Insurance Corporationor any other government agency. Althoughthe Fund seeks to preserve the value of yourinvestment at $1.00 per share, it is possibleto lose money by investing in the Fund.2