A quick response will be appreciated When choosing a mutual fund, one of the most important things to consider is your investment objective. Mutual funds are classified into the followingthree categories: income, growth, and growth and income. The following exercises feature examples of three investors, each with one of the statedgoals. Complete the paragraphs to illustrate your understanding of each mutual fund category.Income ObjectiveNick is nearing retirement and is looking to purchase a mutual fund that will provide a relatively safe investment as well as regular income payments.Among mutual funds with an income objective, Nick can either buy shares inwhich invest in CDs, governmentsecurities, and short-term obligations issued by corporations, or he can invest infor a slightly higher current incomereturn and the potential for capital appreciation as well.Within the category of bond funds are even more specific options. Nick decides to buy shares in a fund that invests in Treasury issues maturing inmore than ten years, known asv bonds. He is also collecting income from shares he already owns in av fund, a type of fund that invests in securities issued by agencies such as Fannie Mae and Freddie Mac.Growth ObjectiveHannah is a 32-year-old woman with two children who owns her own home and has a substantial retirement account. She recently received aninheritance from her uncle and is looking to invest in a mutual fund aimed at capital appreciation, and thus invests in well-established companies withhigher-than-average revenues. She decides to purchaseshares.Growth and Income ObjectiveJack is a 25-year-old engineer who plans to invest $500 from each monthly paycheck in a mutual fund. He is interested in a fund composed of high-yield, high-grade common stocks, along with some convertible securities and preferred stocks, so he buys $2,000 worth ofshares. He would also like to put some money into a fund that is aimed at supporting moral, ethical, or environmentalissues; therefore, he purchasesshares as well.One feature common to all of the above mutual funds is the systematic withdrawal plan. Based on the characteristics of the investors above, thisfeature would be of most interest to

When choosing a mutual fund, one of the most important things to consider is your investment objective. Mutual funds are classified into the following three categories: income, growth, and growth and income. The following exercises feature examples of three investors, each with one of the stated goals. Complete the paragraphs to illustrate your understanding of each mutual fund category. Income Objective Nick is nearing retirement and is looking to purchase a mutual fund that will provide a relatively safe investment as well as regular income payments. Among mutual funds with an income objective, Nick can either buy shares in , which invest in CDs, government securities, and short-term obligations issued by corporations, or he can invest in for a slightly higher current income return and the potential for capital appreciation as well. Within the category of bond funds are even more specific options. Nick decides to buy shares in a fund that invests in Treasury issues maturing in more than ten years, known as bonds. He is also collecting income from shares he already owns in a fund, a type of fund that invests in securities issued by agencies such as Fannie Mae and Freddie Mac. Growth Objective Hannah is a 32-year-old woman with two children who owns her own home and has a substantial retirement account. She recently received an inheritance from her uncle and is looking to invest in a mutual fund aimed at capital appreciation, and thus invests in well-established companies with higher-than-average revenues. She decides to purchase shares. Growth and Income Objective Jack is a 25-year-old engineer who plans to invest $500 from each monthly paycheck in a mutual fund. He is interested in a fund composed of high- yield, high-grade common stocks, along with some convertible securities and preferred stocks, so he buys $2,000 worth of shares. He would also like to put some money into a fund that is aimed at supporting moral, ethical, or environmental issues; therefore, he purchases shares as well. One feature common to all of the above mutual funds is the systematic withdrawal plan. Based on the characteristics of the investors above, this feature would be of most interest to