Of the following, which would be more suitable for a retiree with a modest risk appetite?
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Value Fund
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Diversified Equity Fund
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Growth Fund
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Balanced Fund
D
Correct answer
Explanation
A retiree with modest risk appetite needs capital preservation and steady income. A balanced fund (which typically has 50-70% equity and rest debt) provides growth potential with downside protection. Value funds, diversified equity funds, and growth funds are all predominantly equity-oriented and carry higher volatility, making them unsuitable for conservative retirees.