Multiple choice

A high proportion of investment in income funds is required by

  1. accumulating investors

  2. affluent investors

  3. investors in the inter-generational transfer phase

  4. investors in the distribution phase
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Income funds prioritize regular income generation over capital appreciation, making them ideal for investors who need to draw down their investments. Investors in the distribution phase typically require steady income flows to meet their living expenses, unlike accumulation phase investors who seek growth. The other options are incorrect because accumulating investors need growth, affluent investors may have different objectives, and inter-generational transfer is a distinct phase.

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