Mrs. Tremblay, a 68-year-old retiree, is heavily reliant on her investment portfolio for income. She has expressed concerns about market volatility impacting her lifestyle. While she understands the need for some growth, her priority is predictable income and protection against significant capital loss. Which mutual fund type would best align with her investment objectives?

Question: Mrs. Tremblay, a 68-year-old retiree, is heavily reliant on her investment portfolio for income. She has expressed concerns about market volatility impacting her lifestyle. While she understands the need for some growth, her priority is predictable income and protection against significant capital loss. Which mutual fund type would best align with her investment objectives?

Answer options:

• Aggressive Growth Equity Fund ✅ Short-Term Bond Fund
• Commodity Futures Fund
• Emerging Markets Equity Fund

Correct answer: Short-Term Bond Fund

Explanation: Short-Term Bond Funds focus on generating income with lower volatility compared to equity funds or long-term bond funds, making them suitable for retirees seeking more predictable income and capital preservation.