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A 75-year-old client is looking for a high level of income for his retirement fund. He wants to maintain a balance between income and safety of principal. Which of the following funds will most likely meet this requirement?

a) Growth stock fund

b) Index fund

c) Bond fund

d) Technology sector fund

User Dave Paola
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1 Answer

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Final answer:

Investing in a bond fund is the best option for the 75-year-old client who wants to maintain a balance between income and safety of principal for his retirement fund.

Step-by-step explanation:

The best fund that is likely to meet the 75-year-old client's requirement of high income and safety of principal for his retirement fund is b) Bond fund.

Investing in a bond fund is a safer option as compared to stocks or technology sector funds. Bonds provide a fixed income stream through regular interest payments and have a lower risk of loss of principal.

Additionally, bonds are less volatile than stocks and technology sector funds, which makes them more suitable for a retiree who wants to maintain a balance between income and safety of principal.

User Blue Diamond
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