You have $10 000 to invest now and can add $550 a month,have a moderate risk profile,and would like to set these funds aside for retirement in 20 years.Your most appropriate option would be to
A)put the money in a money market savings account.
B)buy one-year GICs.
C)invest in small cap mutual funds.
D)invest in mutual funds managed by the asset allocation method.

Question

Quizplus · Accepted Answer

The most appropriate option would be to invest in mutual funds managed by the asset allocation method. This is because this method involves investing in a mix of asset classes, such as stocks, bonds, and cash, based on the investor's risk profile and investment goals. The mix of assets is adjusted over time to maintain the desired risk level and potential returns. This provides a diversified portfolio which can help mitigate risk and maximize returns over the long term. Additionally, investing regularly with monthly contributions can help take advantage of dollar-cost averaging, which can further lower risk and potentially boost returns over time.

You Have $10 000 to Invest Now and Can Add