Val wants to invest in a fund whose primary objective is to conserve principal, provide income, and provide long-term growth. Which of the following will best meet her needs?

Question

Quizplus · Accepted Answer

Balanced funds invest in both stocks and bonds, which provides a balance between growth and income, while also conserving principal. They are a good option for investors like Val who want a mix of income and long-term growth but also want to protect their principal investment. The other options, such as cyclical funds, junk bond funds, midcap funds, and short-term corporate bond funds, do not prioritize principal conservation as much as balanced funds, and may involve more risk.

Val Wants to Invest in a Fund Whose Primary Objective