IFIC Mutual Funds Licensing Practice Exam · Question
Scenario 18: Which of the following is typically NOT a valid investment objective for a mutual fund client?
No investment, including mutual funds, can guarantee returns. While mutual funds may aim for capital growth, income, or capital preservation, there is always so
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Question: Scenario 18: Which of the following is typically NOT a valid investment objective for a mutual fund client?
Answer options:
- Capital growth.
- Income generation.
- Capital preservation. ✅ Guaranteed returns.
Correct answer: Guaranteed returns.
Explanation: No investment, including mutual funds, can guarantee returns. While mutual funds may aim for capital growth, income, or capital preservation, there is always some level of risk involved, and past performance does not guarantee future results. The correct answer is "Guaranteed returns.". This capacity-fill scenario 18 reinforces the same competency for the ific bank and follows the certified explanation standard.
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