Series 6 - Investment Company And Variable Contracts Products Representative Exam

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Your customer is 30 years old and earns $60,000 per year. He has $7,000 already accumulated in a money market account and wants to invest this money in a safe place and begin making fixed, periodic investments. Despite a long-term investment horizon, he does not like the idea of losing money. He is willing to accept lower returns in exchange for less risk. What should he invest in?

ABC Emerging Markets Fund
ABC High-Yield Bond Fund
ABC Small-Cap Fund
ABC Balanced Fund


A balanced fund is a good choice for a customer who is risk-averse but desires moderate returns over a long-term investment horizon.