Which is considered the best investment approach for UITF customers at retirement age?

The best investment approach for UITF customers at retirement age is to choose UITFs with regular cash inflow. This strategy aligns well with the financial needs of individuals in retirement who might rely on consistent income to cover living expenses. UITFs that provide regular cash distributions, such as dividends or interest payments, offer retirees a predictable stream of income, enabling them to manage their cash flow effectively during retirement years.

In contrast, high-risk speculative funds may not provide the stability and income needed during retirement, as their volatility can lead to significant fluctuations in value, which can be concerning for someone on a fixed income. Investing solely in bonds can limit diversification andmay not yield enough growth or income, particularly in a low-interest-rate environment, which may not suffice to keep pace with inflation. Consolidating all funds into one UITF can lead to over-concentration in a single investment strategy, reducing diversification and potentially increasing risk.

Overall, UITFs with regular cash inflow provide the ideal balance of stability and income, making them the most suitable option for UITF customers at retirement age.