Thomas wants to invest in a fund that invests in stock, bonds, and money market instruments. Which of the following will meet his needs?

Question

Quizplus · Accepted Answer

Asset allocation funds are designed to invest in multiple asset classes such as stocks, bonds, and money market instruments. These funds aim to provide investors with a diversified portfolio that balances risk and return. Therefore, asset allocation funds would be the best choice for Thomas to meet his investment needs. Aggressive growth funds invest in high-risk stocks for rapid growth, Junk bond funds invest in high-risk bonds, Midcap funds invest in medium capitalization stocks, and Short-term corporate bond funds invest in low-risk corporate bonds.

Thomas Wants to Invest in a Fund That Invests in Stock