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IFIC Mutual Funds Licensing Practice Exam · Question

Mr. Chen, a 35-year-old professional with a high-risk tolerance and a long-term investment horizon, wants to maximize capital appreciation. He is comfortable with significant fluctuations in portfolio value and believes in the long-term growth potential of Canadian companies. Which fund type would you likely recommend to him?

Canadian Equity Funds primarily invest in Canadian company stocks, offering potential for significant capital appreciation over the long term, which aligns with

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Question: Mr. Chen, a 35-year-old professional with a high-risk tolerance and a long-term investment horizon, wants to maximize capital appreciation. He is comfortable with significant fluctuations in portfolio value and believes in the long-term growth potential of Canadian companies. Which fund type would you likely recommend to him?

Answer options: ✅ Canadian Equity Fund

  • Global Real Estate Income Fund
  • Mortgage-Backed Securities Fund
  • Preferred Share Fund

Correct answer: Canadian Equity Fund

Explanation: Canadian Equity Funds primarily invest in Canadian company stocks, offering potential for significant capital appreciation over the long term, which aligns with Mr. Chen's objectives and risk tolerance.

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