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Options
- A
There is constraint in depositing big amounts as the upper limit of investment is fixed
- B
There is no flexibility on the amount that can be deposited and the periodicity of investments
-
The interest is periodically paid out and if it is not immediately invested the investor loses out on compounding benefits
Correct answer
- D
The principal or the interest is not guaranteed and face a credit risk
Why this is the answer
The periodic payout of interest reduces the compounding advantage, making it less suitable for long-term retirement savings.
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