For investors prioritizing income generation and capital preservation, what is a primary benefit of including bond index funds in their investment strategy? Option: Exposure to growth-oriented assets with high return potential, Tax-exempt status for certain types of bond index funds, Regular income stream through periodic interest payments, Hedge against inflation to preserve purchasing power

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For investors prioritizing income generation and capital preservation, what is a primary benefit of including bond index funds in their investment strategy?

Exposure to growth-oriented assets with high return potential

Tax-exempt status for certain types of bond index funds

Regular income stream through periodic interest payments

Hedge against inflation to preserve purchasing power

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What is the primary motivation for investors to include fixed-income securities like bonds in their portfolios?

Capital Appreciation

Interest Income

Dividend Income

Voting Rights

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What is a key advantage of dividend mutual funds?

"They are completely tax-free"

"They offer the potential for higher long-term returns"

"They provide a regular income stream to investors"

"They are less risky than growth mutual funds"

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What is a potential advantage of TMFs compared to other bond funds?

"They have a shorter lock-in period, providing greater liquidity"

"They allow investors to actively trade bonds within the fund"

"They provide indexation benefits for long-term capital gains tax"

"They offer guaranteed returns, eliminating market risk"

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What is a significant advantage of index funds for risk-averse investors who prioritize stability and capital preservation in their portfolios?

Tax-efficient structure with minimal capital gains distributions

Diversification across a wide range of asset classes and sectors

Active management by experienced professionals to navigate market fluctuations

Amplified exposure to market volatility for potential high returns

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What is the primary benefit of the debt component in Aggressive Hybrid Funds?

Generating tax benefits

Providing income stability

Maximizing capital gains

Hedging against inflation