Multiple choice

The highest potential for capital appreciation is offered by

  1. Gilt funds

  2. Growth funds

  3. Balanced funds

  4. Debt funds

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Growth funds invest primarily in equity shares with the objective of capital appreciation, offering the highest potential returns among mutual fund categories. Debt funds and gilt funds focus on fixed income with minimal growth potential, while balanced funds mix both equity and debt for moderate growth.