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Equity funds, index funds, and market cap equity funds are best for which type of investor?

A) Investors with a low risk tolerance

B) Investors who want to protect the value of their investments

C) Investors who are close to retirement

D) Investors with a long time horizon

User Sinopec
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1 Answer

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Answer:

D) Investors with a long time horizon

Step-by-step explanation:

Investors with a long time horizon are best suited for equity funds, index funds, and market cap equity funds.

These types of funds are designed for growth and are more volatile than other investment options, but have historically provided higher returns over longer periods of time.

As such, they are ideal for investors who are willing to tolerate some risk in exchange for potentially higher returns and who have a long time horizon to weather market fluctuations.

Hope this helps!

User Ankit Jayaswal
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