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CSI IFC Exam - Topic 5 Question 7 Discussion

Actual exam question for CSI's IFC exam

Question #: 7
Topic #: 5

[All IFC Questions]

What type of fund offers the highest expected risk and the highest expected return in terms of the risk-return trade-off between different types of mutual funds?

AMortgage fund

BCanadian Equity fund

CSpecialty fund

DReal estate fund

Show Suggested Answer

Suggested Answer: C

Specialty funds, due to their focused and often speculative investments, carry the highest expected risk and return among mutual funds. The feedback from the document states:

'The highest risk, highest expected return mutual fund is a specialty fund.'

by Georgiana at Apr 02, 2026, 08:57 PM

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Christoper

18 days ago

Totally agree, specialty funds can be wild!

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Amalia

23 days ago

Specialty funds usually have the highest risk and return.

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Luis

1 month ago

I’m not confident, but I think mortgage funds are usually safer, so they probably wouldn’t be the answer here.

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Selene

2 months ago

I’m leaning towards the real estate fund, but I recall that specialty funds often have higher risk-return profiles.

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Mari

2 months ago

I remember studying that Canadian equity funds can be quite volatile, but I feel like specialty funds take on even more risk.

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Gwenn

2 months ago

I think the specialty fund might offer the highest expected return because it focuses on niche markets, but I'm not entirely sure.

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