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nvest in securities issued in many countries providing diversification. *1 pointGrowth FundsIncome fundsBalanced fundsSector fundsIndex fundsGlobal funds

Question

Invest in securities issued in many countries providing diversification.

1 point

  • Growth Funds
  • Income funds
  • Balanced funds
  • Sector funds
  • Index funds
  • Global funds
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Solution

When considering investment options that provide diversification by including securities from many countries, the best choice is Global Funds.

Explanation:

  1. Global Funds: These funds specifically invest in securities issued in multiple countries, allowing for broad diversification across various international markets and sectors. This helps mitigate risk, as performance in one region may differ from another.

  2. Growth Funds: Focus primarily on stocks that are expected to grow at an above-average rate compared to their industry or the overall market. These may not specifically provide international exposure.

  3. Income Funds: These are designed to provide regular income, usually through dividends or interest, primarily focusing on more stable investments but might not offer the same level of diversification across countries.

  4. Balanced Funds: These funds invest in a mix of stocks and bonds, aiming for both growth and income. While they may include international investments, they are not exclusively focused on securities from many countries.

  5. Sector Funds: Invest in specific sectors (such as healthcare or technology) and typically do not offer wide geographic diversification.

  6. Index Funds: While they can track global indexes, not all index funds include a wide range of international securities.

Final Conclusion:

For true diversification across various countries, investing in Global Funds is the most advantageous choice.

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