Spirit Of America Investment Fund N-CSRCertified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number : 811-08231

SPIRIT OF AMERICA INVESTMENT FUND, INC.

(Exact name of registrant as specified in charter)

477 Jericho Turnpike

P.O. Box 9006

Syosset, NY 11791-9006

(Address of principal executive offices) (Zip code)

Mr. David Lerner

David Lerner Associates

477 Jericho Turnpike

P.O. Box 9006

Syosset, NY 11791-9006

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-516-390-5565

Date of fiscal year end: December 31

Date of reporting period: December 31, 2022

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

ANNUAL REPORT
December 31, 2022
	Spirit of America Real Estate Income and Growth Fund
	Spirit of America Large Cap Value Fund
	Spirit of America Municipal Tax Free Bond Fund
	Spirit of America Income Fund
	Spirit of America Income & Opportunity Fund

Dear Shareholder,

We are happy to have this opportunity to share with you, our shareholders, the Annual Report for the Spirit of America Real Estate Income and Growth Fund. This includes a review of our performance in 2022, in addition to a discussion of the economy, and our thoughts on the securities markets.

At Spirit of America Investment Funds, our team takes a comprehensive approach to investing. We analyze economic trends, and evaluate industries that could benefit from those trends. Based upon this analysis, we select investments we believe are positioned to provide the best potential returns. Our portfolio managers and analysts utilize their extensive backgrounds in their respective fields to carefully scrutinize each security in the portfolio on an ongoing basis.

The Spirit of America Real Estate Income and Growth Fund’s investment philosophy continues to seek enduring value in the physical structures of America by investing in real estate companies which own data centers, industrial warehouses, hotels, apartments, and other income producing assets. Our goal is to maximize total return to shareholders by benefitting from the income generated through the rental of these properties, while also participating in potential long term appreciation of asset values.

We thank you for your support, and look forward to your future investment in the Spirit of America Real Estate Income and Growth Fund.

Sincerely,

David Lerner President Spirit of America Investment Fund, Inc.

Doug Revello Portfolio Manager

Economic Summary

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The chain-weighted price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5%. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark interest rate seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

Market Commentary

In 2022 the FTSE Nareit All Equity REITs Index delivered a total return of (24.95)% In an extremely challenging year for the markets, the leading REIT sector was the Diversified Sector which finished with a (9.02)% for the year. This sector is comprised of REITS that are able to own and manage a mix of property types while collecting rent from these tenants. Having that broad exposure was able to help alleviate the market losses for properties in that sector. It has been a difficult year for REITs and stocks in general as interest rates continue to rise. REITs fundamentally borrow money to buy properties and charge rents and as rates rise thus weakening the economy it makes those properties more expensive while also limiting the ability of Americans to pay rent.

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets

in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

Fund Summary

The Spirit of America Real Estate Income and Growth Fund, SOAAX (the “Fund”), aims to provide high total return through a combination of capital appreciation and dividend income.

As of December 31, 2022 the Fund was invested over 95% in REITs. A REIT, or Real Estate Investment Trust, is a company that owns or finances income-producing real estate. REITs provide investors regular income streams, diversification and long-term capital appreciation. REITs typically pay out all of their taxable income as dividends to shareholders. REITs are tied to almost all aspects of the economy, including apartments, hospitals, hotels, industrial facilities, infrastructure, nursing homes, offices, shopping malls, storage centers, and student housing.

Return Summary

The Fund had a total one year return of (27.36)% (no load, gross of fees). This compares to the (24.51)% returned by its benchmark, the MSCI US REIT Index, for the same period. That result does not take the sales charge and expense ratio into account.

The material factors that affected the Fund were market direction and security selection. The Funds underperformance was primarily due to the REIT market that was hit hard with rising interest rates and the world readjusting to post pandemic living. The Fund was overweight in the Industrial sector as compared to its MSCI US REIT benchmark. That was one of the worst performing sectors in the REITs market, with Industrial having a total return of (37.22)% for the Fund compared to (28.99)% return in the benchmark. The Fund did not rely on derivatives or leverage strategies.

The value of the Fund and the securities in which the Fund invests may be adversely affected by impacts caused by COVID-19 and other epidemics and pandemics that may arise in the future.

Including sales charge and expenses, as of December 31, 2022 the Fund’s one year return was (32.22)%. The annualized five year return was 1.72% per year, while the average annual return over the past ten years was 4.89%.

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 5.25% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

The Board of Directors of the Fund has set a fixed distribution policy whereby the Fund will declare semi-annual distributions comprised of income earned, if any, realized long-term capital gains, if any, and to the extent necessary, return of capital, payable as of June 30 and December 31 of each year in the annual aggregate minimum amount of $0.85 per share. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of these distributions. The Fund’s total return based on net asset value is presented in the table above as well as in the Financial Highlights tables.

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

Dear Shareholder,

We welcome this opportunity to share with you, our investors, the Annual Report for the Spirit of America Large Cap Value Fund, along with our thoughts on the market and recent events.

At Spirit of America, we take a comprehensive approach to investing. Our portfolio managers and analysts use their extensive backgrounds in their respective fields to carefully scrutinize each security in the portfolio on an ongoing basis. We evaluate economic trends, we analyze sectors that could benefit from those trends, and finally, invest in companies that we believe possess strong fundamentals.

We believe that investing in sound companies with attractive valuations will help enhance the long-term returns of the Spirit of America Large Cap Value Fund.

The Spirit of America Large Cap Value Fund’s investment philosophy continues to be to focus on the large cap value segment of the U.S. equity market. Among the valuation factors used to evaluate these stocks are companies with lower debt ratios than their peer group and companies that are undervalued versus the company’s intrinsic worth and future income potential.

We appreciate your continued support and look forward to your future investment in the Spirit of America Large Cap Value Fund.

Sincerely,

David Lerner President Spirit of America Investment Fund, Inc.

Doug Revello Portfolio Manager

Economic Summary

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The chain-weighted price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5%. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark interest rate seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

Market Commentary

When it came to market performance and investment returns in 2022 there was one clear, dominant force driving the markets and that was: inflation. We saw the highest inflation numbers in over 40 years which led to the Federal Reserve instituting an unprecedented series of interest rate hikes. These hikes were felt across both fixed income and equity markets. The Morningstar U.S. Market Index lost 19.4% in 2022, leaving the stock market with its biggest annual loss since 2008, when it lost 38.4%. Investor concerns about rising interest rates, slowing economic growth and persistently high inflation triggered sustained bouts of selling throughout 2022. Tech stocks and growth names in communication services were hit the hardest. These sectors were among the worst performing segments for 2022. Information technology stocks from the S&P 500 were down 27% for the year, while communications services stocks were down more than 30% in 2022. We now move to the more positive side of the ledger for 2022. Of the 11 sectors in the S&P 500, just one posted a positive return for the year and that was energy. Overall it was a rough year for the markets and investors alike.

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

Fund Summary

The Spirit of America Large Cap Value Fund, SOAVX (the “Fund”), seeks to provide capital appreciation with a secondary objective of current income. The emphasis of the Fund is focused on investing in a diversified portfolio. We are invested in all 11 sectors on the S&P 500 Index.

The material factors that affected the Fund were market direction, stock selection, and the ongoing COVID-19 pandemic. The value of the Fund and the securities in which the Fund invests may be adversely affected by impacts caused by COVID-19 and other epidemics and pandemics that may arise in the future.

The Fund does not make decisions based on complicated algorithms. We are not a hedge fund. At Spirit of America, technology works for us; we do not work for technology. We do not receive buy signals from a computer generated model. We invest the old-fashioned way – utilizing hard work, intensive research, and intuitive decisions. Our decisions are based on the experience of our dedicated team of professionals.

Return Summary

The Fund had a total return of (16.45)% (no load, gross of fees) in 2022. This compares to its benchmark, the S&P 500 Index, which was down (18.11)% for the year 2022.

The material factors that affected the Fund’s outperformance of its benchmark, the S&P 500 Index, were market direction and security selection. The Fund continues to invest with a value approach looking for companies with attractive valuations. The Fund outweighed the S&P by 8.18% in the Energy sector which was the only sector in the S&P 500 to finish the year in positive territory. Another reason for the Fund’s outperformance over the benchmark was the Consumer Discretionary sector ending the year with a total return down more than (30%) where the Fund was over five percent less concentrated in that segment than the S&P 500. This was due to the security selection and sector positioning within the Fund.

Including sales charge and expenses, as of December 31, 2022 the Fund’s one year return was (22.03)%. The annualized five year return was 6.79% per year, while the average annual return over the past ten years was 9.58%.

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 5.25% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

The Board of Directors of the Fund has set a fixed distribution policy whereby the Fund will declare semi-annual distributions comprised of income earned, if any, realized long-term capital gains, if any, and to the extent necessary, return of capital, payable as of June 30 and December 31 of each year in the annual aggregate minimum amount of $1.40 per share. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of these distributions. The Fund’s total return based on net asset value is presented in the table on the prior page as well as in the Financial Highlights tables.

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

Dear Shareholder,

We are very pleased to provide the 2022 Annual report for the Spirit of America Municipal Tax Free Bond Fund. We look forward to continued inflows and further development of the Spirit of America Municipal Tax Free Bond Fund.

Our many years of experience in the municipal bond market have helped us to pursue a balance between yield and quality. Our goal is to continue seeking current income that is exempt from federal income tax, while employing a relatively conservative approach to investing in the municipal market. Although the mandate of the Spirit of America Municipal Tax Free Bond Fund allows it to invest in lower rated securities, at this time, the focus will continue to be investing in bonds which are investment grade.

We appreciate your support of our fund and look forward to your future investment in the Spirit of America Municipal Tax Free Bond Fund.

Thank you for being a part of the Spirit of America Family of Funds.

Sincerely,

David Lerner President Spirit of America Investment Fund, Inc.

Mark Reilly Portfolio Manager

Economic Summary

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The chain-weighted price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5%. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark interest rate seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

Market Commentary

Total 2022 municipal bond sale volume plunged 21% from 2021, as issuers were flush with cash and rising interest rates stymied refundings and taxable issuances. December municipal bond issuance, at $17.165 billion, also disappointed, dropping 58.1% from the same period a year earlier. Most firms at the end of 2021 estimated total issuance for 2022 would fall between $390 billion and $550 billion, basing their forecasts on factors like the new infrastructure law, interest rate expectations and monetary policy, global economic recovery and future tax policy. But Russia’s invasion of Ukraine added a major macroeconomic concern to the mix, which aside from humanitarian costs, amplified supply-chain problems and drove up fossil fuel costs and inflation around the globe. Tax-exempt issuance dropped 10.9% to $309.6 billion from $347.6 billion in 2022. Taxable issuance dropped 56.4% to $52.7 billion from $120.8 billion in 2021.

The 30 Year US Treasury yield moved from a 2.03% on 1/3/22 to a 3.97% on 12/31/22. The MMD Tax-Free 30 Year AAA yield began the year at a 1.50% on 1/3/22 and ended the year at a 3.58% on 12/31/22. The U.S.10-year Treasury yield finished 2022 at 3.88% in a year marked by prices rising at its fastest pace in 40 years and the Federal Reserve aggressively tightening its monetary policy. The 10-year yield started the year at 1.63%. The yield hit a high of 4.24% in October.

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

Fund Summary

The Spirit of America Municipal Tax Free Bond Fund, (SOAMX) (the “Fund”), seeks to provide high current income that is exempt from federal income tax, including alternative minimum tax. The Fund focuses on quality credits in the municipal market. We are targeting a balance between attractive yield and quality investments.

The Fund can invest in lower rated securities; however we have kept our focus on investing in bonds that are investment grade. Our plan is to continue with this relatively conservative approach to investing in the municipal market.

In keeping with this philosophy, the Fund has been able to maintain attractive yields without venturing into the speculative, below investment grade, segment of the municipal market. As of December 31, 2022, approximately 97.51% of the portfolio was above investment grade, with 97.51% rated “A” or better. The average rating of holdings in the Fund is Aa2/AA.

One of the Fund’s goals has been to diversify with respect to geographic location and sector. As of the end of December 2022, the Fund consists of 151 different positions varied across 28 states and the District of Columbia. The holdings range throughout various sectors, including areas such as: general obligations, healthcare, education, industrial development and other public improvement bonds.

While it certainly has not been a primary goal of the Fund, we have been able to maintain a percentage of bonds in states and territories which have a state tax exemption in New York, New Jersey and Connecticut, where a majority of our clients reside. Additionally, Puerto Rico bonds are exempt from state tax. Due to the struggles Puerto Rico has been facing, the Fund has actively managed its Puerto Rico holdings. As of December 31, 2022, Puerto Rico holdings now represent 0.00% of the portfolio.

Return Summary

The Fund’s Net Asset Value (NAV) went from $9.44 to $8.44 during 2022. The Fund is currently at $39,411,873 million in net assets with 1,206 shareholder accounts as of December 31, 2022.

The Fund had a total one year return of (8.04%) (no load, gross of fees) for 2022. This compares to the (8.53%) return of its benchmark, the Bloomberg Municipal Bond Index, for the same period. That result does not take the Fund’s sales charge and expense ratio into account. The Fund’s slightly better performance relative to the benchmark was largely due to market timing and security selection.

The material factors that affected the Fund were the rise in interest rates in 2022 and the continued investment in high quality securities. As a result of the Fund’s focus on quality, it had very little exposure to Puerto Rico whose challenges have been well documented. The Fund does not rely on derivatives or leverage strategies. The value of the Fund and the securities may be adversely affected by impacts caused by COVID-19 and other epidemics and pandemics that may arise in the future.

Including the sales charge and expenses, as of December 31, 2022, the Fund’s one year return was (13.19%). The Fund had an annualized five year return of (0.77%) and an annualized return since inception of 2.34%.

Our plan is to proceed with the same strategy that we have utilized since the Fund’s inception. We will continue to seek out municipal bonds that provide a balance between credit risk and the potential to offer high current income and consistently attractive yields.

Ratings are provided by Moody’s Investor Services and Standard & Poor’s.

The Moody’s ratings in the following ratings explanations are in parenthesis.

AAA (Aaa) - The highest rating assigned by Moody’s and S&P. Capacity to pay interest and repay principal is extremely strong. AA (Aa) - Debt has a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in a small degree.

A - Debt rated “A” has a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher-rated categories.

BBB (Baa) - Debt is regarded as having an adequate capacity to pay interest and repay principal. These ratings by Moody’s and S&P are the “cut-off” for a bond to be considered investment grade. Whereas debt normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal in this category than in higher-rated categories.

BB (Bb), B, CCC (Ccc), CC (Cc), C - Debt rated in these categories is regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. “BB” indicates the least degree of speculation and

“C” the highest. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or market exposure to adverse conditions and are not considered to be investment grade.

D - Debt rated “D” is in payment default. This rating category is used when interest payments or principal payments are not made on the date due, even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period.

Ratings are subject to change.

Ratings apply to the bonds in the portfolio. They do not remove market risk associated with the fund.

Ratings are based on Moody’s and S&P, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher of the two rating is applied thus improving the overall evaluation of the portfolio.

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 4.75% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

Dear Shareholder,

We are pleased to send you the 2022 Annual Report for the Spirit of America Income Fund. The Spirit of America Income Fund began operations on December 31, 2008.

As 2022 has come to an end, we could not be more proud and excited about the progress of this fund. Our goal is to continue seeking current income while investing in quality fixed income securities.

We firmly maintain our philosophy that striving for the optimal balance between yield and quality will continue to position us to achieve long term success. Our dedication to providing our investors with a fund that will merit their long term commitment and satisfaction has never been stronger. Now is an excellent time to team up with your Investment Counselor to evaluate your portfolio and make sure you are properly positioned to achieve your investment goals.

Your support is sincerely appreciated and we look forward to your continued confidence in the Spirit of America Income Fund.

Sincerely,

David Lerner President Spirit of America Investment Fund, Inc.

Mark Reilly Portfolio Manager

Economic Summary

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The chain-weighted price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5%. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark interest rate seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

Market Commentary

When it came to market performance and investment returns in 2022 there was one clear, dominant force driving the markets and that was: inflation. We saw the highest inflation numbers in over 40 years which led to the Federal Reserve instituting an unprecedented series of interest rate hikes. These hikes were felt across both fixed income and equity markets. The Morningstar U.S. Market Index lost 19.4% in 2022, leaving the stock market with its biggest annual loss since 2008, when it lost 38.4%. Investor concerns about rising interest rates, slowing economic growth and persistently high inflation triggered sustained bouts of selling throughout 2022. Tech stocks and growth names in communication services were hit the hardest. These sectors were among the worst performing segments for 2022. Information technology stocks from the S&P 500 were down 27% for the year, while communications services stocks were down more than 30% in 2022. We now move to the more positive side of the ledger for 2022. Of the 11 sectors in the S&P 500, just one posted a positive return for the year and that was energy. Overall it was a rough year for the markets and investors alike.

Total 2022 municipal bond sale volume plunged 21% from 2021, as issuers were flush with cash and rising interest rates stymied refundings and taxable issuances. December municipal bond issuance, at $17.165 billion, also disappointed, dropping 58.1% from the same period a year earlier. Most firms at the end of 2021 estimated total issuance for 2022 would fall between $390 billion and $550 billion, basing their forecasts on factors like the new infrastructure law, interest rate expectations and monetary policy, global economic recovery and future tax policy. But Russia’s invasion of Ukraine added a major macroeconomic concern to the mix, which aside from humanitarian costs, amplified supply-chain problems and drove up fossil fuel costs and inflation around the globe. Tax-exempt issuance dropped 10.9% to $309.6 billion from $347.6 billion in 2022. Taxable issuance dropped 56.4% to $52.7 billion from $120.8 billion in 2021.

The 30 Year U.S. Treasury yield moved from a 2.03% on 1/3/22 to a 3.97% on 12/31/22. The MMD Taxable 30 Year AAA yield began the year at a 2.59% on 1/3/22 and ended the year at a 5.34% on 12/31/22. The U.S.10-year Treasury yield finished 2022 at 3.88% in a year marked by prices rising at its fastest pace in 40 years and the Federal Reserve aggressively tightening its monetary policy. The 10-year yield started the year at 1.63%. The yield hit a high of 4.24% in October.

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

Fund Summary

The Spirit of America Income Fund’s (SOAIX) (the “Fund”) objective is to seek high current income. The emphasis of the Fund is focused on investing in a diversified portfolio of taxable municipal bonds, income producing equity securities, preferred stocks, collateralized mortgage obligations, and master limited partnerships (MLPs).

At the end of 2022, the Fund had over 57% of its assets in taxable municipal bonds, more than 20% in preferred stock, over 13% in common stock positions and more than 10% in corporate bonds. We remain diligent in our approach to the market. Here at Spirit of America each and every credit goes through rigorous credit analysis.

The Fund does not make decisions based on complicated algorithms. We are not a hedge fund. At Spirit of America, technology works for us; we do not work for technology. We do not receive buy signals from a computer generated model.

We invest the old-fashioned way – utilizing hard work, intensive research, and intuitive decisions. Our decisions are based on the experience of our dedicated team of professionals. When we began the Fund, we felt the environment was favorable to start an income fund and while past performance is no guarantee of future results; our results continue to validate that belief.

Return Summary

The Fund’s Net Asset Value (NAV) went from $12.35 to $10.03 during 2022. The Fund is currently at $75,285,793 million in net assets with 4,212 shareholder accounts as of December 31, 2022.

The Fund had a total return of (11.71%) (gross of fees) for fiscal year ended December 31, 2022. This compares to the (13.01%) returned by its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the same period.

The material factors that affected the Fund were market direction and security selection. The Fund’s outperformance relative to its benchmark was principally due to the performance of the common stock holdings within the portfolio, which are not prevalent in the benchmark. The common stock holdings within the Fund had a total return of approximately 11% for 2022. The Fund does not rely on derivatives or leverage strategies. The value of the Fund and the securities may be adversely affected by impacts caused by COVID-19 and other epidemics and pandemics that may arise in the future.

Including the sales charge and expenses, as of December 31, 2022, the Fund’s one year return was (16.85%). The Fund, which began operations in January 2009, had an annualized five year return of 0.40% and an annualized return since inception of 5.29%.

We plan to proceed with the same game plan we have employed since the Fund began: pursuing a balance between yield and risk with a focus on quality.

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 4.75% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

Dear Shareholder,

We are pleased to send you the 2022 Annual Report for The Spirit of America Income & Opportunity Fund (the “Fund”). The Fund began operations on July 8, 2013.

On January 24, 2023, the Board of Directors of Spirit of America Investment Fund, Inc., on behalf of the Fund, approved a proposal to close and liquidate the Fund. The Fund is expected to cease operations on March 3, 2023. For additional information, please see the Fund’s prospectus supplement dated January 31, 2023. As disclosed in the supplement, the Fund has ceased to pursue its investment objective and management of the Fund has begun the process of liquidating the Fund’s assets in anticipation of the Fund’s closure.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. For more information, please visit us at www.SOAFunds.com.

Sincerely,

David Lerner President Spirit of America Investment Fund, Inc.

Mark Reilly Portfolio Manager

Economic Summary

At the end of December, the U.S. Bureau of Economic Analysis released its final reading of the third quarter 2022 gross domestic product (GDP), to show an increase in the annual growth rate of 3.2%, higher than previous estimates, at least temporarily easing recession fears. GDP, a sum of all goods and services, unexpectedly rose from the previously reported 2.9%. The stronger than previously estimated growth in the third quarter GDP follows consecutive negative quarters to start the year, meeting a commonly accepted definition of a recession. The growth in the third quarter came in large part due to a narrowing trade deficit, which economists expected and consider to be a one-off occurrence that won’t be repeated in future quarters. Consumer spending as measured through personal consumption expenditures increased at just a 1.4% pace in the quarter, down from 2% in the second quarter. Gross private domestic investment fell 8.5%, continuing a trend after falling 14.1% in the second quarter. Residential investment, a gauge of homebuilding, tumbled 26.4% after falling 17.8% in the second quarter, reflecting a sharp slowdown in the real estate market. On the plus side, exports, which add to GDP, rose 14.4%, while imports, which subtract, dropped 6.9%. There was some good news on the inflation front. The consumer price index, a cost-of-living measure that adjusts for consumer behavior, rose 4.1% for the quarter, well below the Dow Jones estimates for a 5.3% gain, due in large part to falling energy prices. Also, the personal consumption expenditures index, a key inflation measure for the Federal Reserve, increased 4.2%, down sharply from 7.3% in the prior quarter.

Job growth decelerated in December but was still better than expected, a sign that labor market remains strong even as the Federal Reserve tries to slow economic growth. Nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, while the unemployment rate fell to 3.5, 0.2 percentage point below the expectation. The job growth marked a decrease from the 256,000 gain in November, which was revised down 7,000 from the initial estimate. Wage growth was less than expected in an indication that inflation pressures could be weakening. By sector, leisure and hospitality led with 67,000 added jobs. The relative strength in job growth comes despite repeated efforts by the Federal Reserve to slow the economy, the labor market in particular. The central bank raised its benchmark seven times in 2022 for a total of 4.25 percentage points, with more increases likely on the way.

During its December meeting, The Federal Open Market Committee (FOMC) raised its benchmark interest rate to its highest level in 15 years, indicating the fight against inflation is not over despite some promising signs lately. Keeping with expectations, the rate setting FOMC voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%. The increase broke a string of four straight three-quarter point hikes, the most aggressive policy moves since the early 1980s. Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. Fed officials believe raising rates helps take money out of the economy, reducing demand and ultimately pulling prices lower after inflation spiked to its highest level in more than 40 years. During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Federal Reserve was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression. Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5-5.25%. The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession.

Market Commentary

When it came to market performance and investment returns in 2022 there was one clear, dominant force driving the markets and that was: inflation. We saw the highest inflation numbers in over 40 years which led to the Federal Reserve instituting an unprecedented series of interest rate hikes. These hikes were felt across both fixed income and equity markets. The Morningstar U.S. Market Index lost 19.4% in 2022, leaving the stock market with its biggest annual loss since 2008, when it lost 38.4%. Investor concerns about rising interest rates, slowing economic growth and persistently high inflation triggered sustained bouts of selling throughout 2022. Tech stocks and growth names in communication services were hit the hardest. These sectors were among the worst performing segments for 2022. Information technology stocks from the S&P 500 were down 27% for the year, while communications services stocks were down more than 30% in 2022. We now move to the more positive side of the ledger for 2022. Of the 11 sectors in the S&P 500, just one posted a positive return for the year and that was energy. Overall it was a rough year for the markets and investors alike.

Total 2022 municipal bond sale volume plunged 21% from 2021, as issuers were flush with cash and rising interest rates stymied refundings and taxable issuances. December municipal bond issuance, at $17.165 billion, also disappointed, dropping 58.1% from the same period a year earlier. Most firms at the end of 2021 estimated total issuance for 2022 would fall between $390 billion and $550 billion, basing their forecasts on factors like the new infrastructure law, interest rate expectations and monetary policy, global economic recovery and future tax policy. But Russia’s invasion of Ukraine added a major macroeconomic concern to the mix, which aside from humanitarian costs, amplified supply-chain problems and drove up fossil fuel costs and inflation around the globe. Tax-exempt issuance dropped 10.9% to $309.6 billion from $347.6 billion in 2022. Taxable issuance dropped 56.4% to $52.7 billion from $120.8 billion in 2021.

The 30 Year U.S. Treasury yield moved from a 2.03% on 1/3/22 to a 3.97% on 12/31/22. The MMD Taxable 30 Year AAA yield began the year at a 2.59% on 1/3/22 and ended the year at a 5.34% on 12/31/22. The U.S.10-year Treasury yield finished 2022 at 3.88% in a year marked by prices rising at its fastest pace in 40 years and the Federal Reserve aggressively tightening its monetary policy. The 10-year yield started the year at 1.63%. The yield hit a high of 4.24% in October.

On March 11, 2020, the World Health Organization announced that it had made the assessment that COVID-19 can be characterized as a pandemic. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

Fund Summary

The Spirit of America Income & Opportunity Fund’s (SOAOX) (the “Fund”) objective is to provide shareholders with current income and the potential for capital appreciation. The emphasis of the Fund is focused on investing in a diversified portfolio of equity securities, fixed income securities, and master limited partnerships (MLPs).

At the end of 2022, the Fund had more than 41% of its assets invested in taxable municipal bonds, over 37% in non-MLP common stock positions, more than 11% in preferred stock positions, over 5% in master limited partnerships (MLPs) and more than 2% in corporate bonds.

The Fund does not make decisions based on complicated algorithms. We are not a hedge fund. At Spirit of America, technology works for us; we do not work for technology. We do not receive buy signals from a computer generated model. We invest the old-fashioned way – utilizing hard work, intensive research, and intuitive decisions. Our decisions are based on years of experience being involved with the markets.

Return Summary

The Fund had a total one year return of (21.36%) (no load, gross of fees) as of December 31, 2022. This compares to the (13.01%) return of its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the same period. That result does not take the Fund’s sales charge and expense ratio into account.

The material factors that affected the Fund were market direction and security selection. The downward trajectory of the stock market contributed to the Fund’s underperformance of the benchmark, which is solely a measure of the bond market. The common stock holdings within the Fund had a total return of approximately (25%) for 2022.

The holdings of the Fund were chosen based on consideration of several factors including credit ratings, market capitalization, and securities that provide income. The Fund did not rely on derivatives or leverage strategies.

Including the sales charge and expenses, as of December 31, 2022, the Fund’s one year return was (26.06%). The Fund, which began operations in July 2013, had an annualized five year return of 0.38% and an annualized return since inception of 2.26% as December 31, 2022.

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total returns, with load, include the 4.75% maximum sales charge for the Class A Shares or the 1.00% maximum deferred sales charge for the Class C Shares.

The Board of Directors of the Fund has set a fixed distribution policy whereby the Fund will declare semi-annual distributions comprised of income earned, if any, realized long-term capital gains, if any, and to the extent necessary, return of capital, payable as of June 30 and December 31 of each year in the annual aggregate minimum amount of $0.60 per share. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of these distributions. The Fund’s total return based on net asset value is presented on the prior page as well as in the Financial Highlights tables.

The chart represents historical performance of a hypothetical investment of $10,000 in the Fund since inception.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call (800) 452-4892.

See accompanying notes which are an integral part of these financial statements.

See accompanying notes which are an integral part of these financial statements.

See accompanying notes which are an integral part of these financial statements.

See accompanying notes which are an integral part of these financial statements.

See accompanying notes which are an integral part of these financial statements.

See accompanying notes which are an integral part of these financial statements.

See accompanying notes which are an integral part of these financial statements.

See accompanying notes which are an integral part of these financial statements.