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If an investor is seeking capital gains and income from their investments, what type of investment would BEST suit these objectives?

(A) The purchase of a block of growth stock

(B) The deposit of funds into a money market account

(C) The purchase of a mutual fund heavily invested in equity securities.

(D) The purchase of STRIPs on U. S. Treasury Securities

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Answers (1)
  1. Today, 00:21
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    The correct answer is letter "C": The purchase of a mutual fund heavily invested in equity securities.

    Explanation:

    A mutual fund is a collective investment that puts together the money of a large number of investors to purchase a variety of securities like stock or bonds. When a share of a mutual fund is bought, a small stake of all investments included in that fund is gotten. Mutual funds give individual investors access to well-managed portfolios at a low price.
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