Ch.12 · Matching Schemes to Investor Profiles · medium

Which of the following correctly describes how goal timelines map to fund categories?

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EXPLANATION

The correct mapping is: Short-term (under 1 year) → liquid/overnight funds for capital preservation; Medium-term (3-5 years) → hybrid or large-cap equity for moderate growth; Long-term (7+ years) → diversified equity for inflation-beating growth via compounding.

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