Question 14 of 90
An investor seeking potentially high returns would generally prefer which of the following funds?
A
Large Cap Fund
B
Small Cap Fund
C
Diversified Equity Fund
D
Income Fund
Correct Option:
B
Explanation
Small-cap funds invest in smaller companies with higher growth potential and therefore generally offer the possibility of higher returns, although they also carry higher risk than large-cap or diversified equity funds.
