231k views
0 votes
A sophisticated client has expressed an interest in becoming more aggressive with their investment strategy. Her current portfolio consists of the following: $50,000 cash $200,000 in retirement accounts $100,000 in various individual stocks in different industries $100,000 in a balance fund She is willing to invest $25,000 for a minimum of 7 to 10 years and accepts that the investment can and will fluctuate in value over time. What investments would be the most appropriate?

User Tvpmb
by
8.0k points

1 Answer

1 vote

Answer:

No options are available, but I would advice her to invest in a mid-cap growth fund. Mid-cap growth funds generally invest in stocks that are in the middle of the stock indexes like S&P 500, and they have a larger potential of growth than large-cap stocks. If she is willing to accept a higher risk, she could also invest in a small-cap growth fund since those stocks have an even larger growth potential.

Since the client knows that this investment carries a certain risk, and its value could vary a lot in time, it is a good option for her. Obviously she wants to make more money but she will need to take more risks also.

User Michalmuskala
by
8.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.