Scenario 74: An investor who prioritizes capital preservation and has a short-term investment horizon (e.g., less than 1 year) would typically find which fund type most suitable?

Question: Scenario 74: An investor who prioritizes capital preservation and has a short-term investment horizon (e.g., less than 1 year) would typically find which fund type most suitable?

Answer options:

• Global Equity Fund
• High-Yield Bond Fund ✅ Money Market Fund
• Real Estate Fund

Correct answer: Money Market Fund

Explanation: Money Market Funds invest in highly liquid, short-term debt instruments, offering capital preservation and easy access to cash with very low risk. They are ideal for short-term liquidity needs. Other options carry too much risk for short-term capital preservation. The correct answer is "Money Market Fund". This capacity-fill scenario 74 reinforces the same competency for the ific bank and follows the certified explanation standard.