Which type of fund is appropriate for a client with changing expenses in retirement?

A fund that offers regular cash inflow is particularly suited for a client with changing expenses in retirement because it provides a steady stream of income. This predictable cash flow can help cover varying monthly expenses, such as healthcare, housing, or leisure activities, without causing anxiety about investment fluctuations or capital depletion.

The flexibility of having cash available when needed can be crucial for retirees, who may encounter unexpected costs or changes in their budget due to circumstances like medical emergencies or lifestyle adjustments. Regular cash inflow funds can include dividend-paying stocks, bonds, or funds specifically designed for income generation, thus allowing retirees to maintain their standard of living while managing their investment portfolio.

In contrast, high-growth UITFs may focus on capital appreciation rather than providing cash flow, which might not adequately address the immediate financial needs of a retiree. UITFs with high fees could reduce overall returns and cash availability, making them less suitable for retirees who need to maximize their income. Risky investment instruments may lead to significant volatility and potential loss, which can be particularly detrimental during retirement when the preservation of capital is often a priority.