IFIC Mutual Funds Licensing Practice Exam · Question
A client has a low risk tolerance and needs regular income. Which type of mutual fund would generally be most suitable?
A Canadian Bond Fund typically offers lower risk and more predictable income compared to equity-focused or commodity funds, making it suitable for clients with
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Question: A client has a low risk tolerance and needs regular income. Which type of mutual fund would generally be most suitable?
Answer options:
- Aggressive Growth Equity Fund ✅ Canadian Bond Fund
- Commodity Fund
- Emerging Market Equity Fund
Correct answer: Canadian Bond Fund
Explanation: A Canadian Bond Fund typically offers lower risk and more predictable income compared to equity-focused or commodity funds, making it suitable for clients with low risk tolerance and a need for regular income. The other options are generally high-risk.
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