Conservative investors are likely to want to invest in ________ mutual funds, while risk-tolerant investors are likely to want to invest in ________.

Question

Quizplus · Accepted Answer

Conservative investors are likely to prefer income mutual funds, which typically invest in less risky assets like bonds and dividend-paying stocks. High growth mutual funds, on the other hand, are more volatile and therefore more suitable for risk-tolerant investors who can tolerate fluctuating returns. Therefore, the best choice is option A: income funds for conservative investors and high-growth funds for risk-tolerant investors.

Conservative Investors Are Likely to Want to Invest in ________