Rank the following fund categories from most risky to least risky:
I. Equity growth fund
II. Balanced fund
III. Sector fund
IV. Money market fund

Question

Quizplus · Accepted Answer

Sector funds are typically the most risky as they invest in a specific sector, making them more vulnerable to sector-specific downturns. Equity growth funds, which invest in stocks expected to grow at an above-average rate, are next in terms of risk. Balanced funds, which invest in a mix of stocks and bonds, offer a moderate risk level. Money market funds are the least risky as they invest in short-term debt securities, offering stability and liquidity.

Rank the Following Fund Categories from Most Risky to Least