Series 6 - Investment Company And Variable Contracts Products Representative Exam

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Which type of fund offers investors guaranteed principal (adjusted for dividends and distributions) on a set future date while providing opportunities for higher returns through investing in higher-risk asset classes?

Stock fund
A
Principal-protected fund
B
Guaranteed investment contract
C
Exchange traded fund
D

Explanations

A principal-protected fund offers investors a guarantee of principal, adjusted for dividends and distributions from the fund, on a set future date while providing a change at higher returns by investing in higher-risk asset classes.

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