Ch.12 · Matching Schemes to Investor Profiles · easy
Which of the following fund types would be LEAST appropriate for an investor's emergency fund?
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EXPLANATION
An emergency fund must be immediately accessible and protected from market volatility. Mid-cap equity funds are highly volatile and may suffer significant NAV declines precisely when emergencies occur (often during market downturns). Liquid, overnight, and money market funds are appropriate for emergency corpus.
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