Jack has managed to save $1,000 and wants to start investing. The financial markets make him nervous as he has very limited financial resources. Which one of the following types of funds is probably best for Jack at this time?

Question

Quizplus · Accepted Answer

A balanced fund is a good choice for Jack as it invests in a mix of stocks, bonds, and other securities that are designed to provide a balance between growth and income. This type of fund is considered less risky than other options such as aggressive growth funds or high yield funds, making it a good option for someone with limited financial resources and who is nervous about the financial markets. A sector fund focuses on a particular sector of the economy, an aggressive growth fund invests in companies with high growth potential, a social conscience fund invests in companies that prioritize environmental, social, and governance issues, and a high yield fund focuses on securities with higher returns but also higher risk.

Jack Has Managed to Save $1,000 and Wants to Start