Multiple choice

Of the following, which would be more suitable for a retiree with a modest risk appetite?

  1. Value Fund

  2. Diversified Equity Fund

  3. Growth Fund

  4. Balanced Fund

Reveal answer Fill a bubble to check yourself
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.