What is a common feature of Equity UITFs?

Equity UITFs, or Unit Investment Trust Funds that primarily invest in equities, are designed with a focus on capital appreciation and growth potential. This characteristic is integral to these funds as they are constructed to leverage investments in stocks or shares of companies, which tend to offer higher returns over the long-term compared to fixed-income investments. The essence of investing in equities is to tap into the potential for capital gains as the companies grow and their stock values increase, which aligns directly with the objective of achieving high growth.

In contrast, the other options reflect characteristics of different types of investments. Investments in government bonds are typically associated with fixed-income UITFs, which aim to provide steady income rather than growth potential. Preserving capital is a primary concern for conservative investment strategies, which contrasts with the growth-oriented approach of equity UITFs. Lastly, the idea of guaranteeing a fixed return is again associated with fixed-income securities rather than equities, as the stock market inherently involves fluctuations and does not guarantee specific outcomes or returns. Thus, high growth potential distinctly characterizes equity UITFs.