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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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