What is the primary objective of a growth-oriented mutual fund? A. Preserve capital B. Generate regular income C. Achieve long-term capital appreciation D. Provide stability and liquidity
Question
What is the primary objective of a growth-oriented mutual fund? A. Preserve capital B. Generate regular income C. Achieve long-term capital appreciation D. Provide stability and liquidity
Solution
The primary objective of a growth-oriented mutual fund is C. Achieve long-term capital appreciation. This type of fund invests in companies that are expected to grow at an above-average rate compared to other companies in the market. The goal is to maximize capital gains, rather than generating regular income or preserving capital.
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