Accredited Wealth Management Advisor 2025 – 400 Free Practice Questions to Pass the Exam

For a client with an expected hold period of under one year, money market mutual funds are the most suitable investment option. These funds typically invest in short-term, high-quality debt instruments, making them less volatile and providing liquidity, which is essential for investors who may need access to their funds quickly. The goal of a money market mutual fund is to maintain a stable net asset value (NAV), providing investors with the security of preserving capital while generating a modest return, which is ideal for short-term holdings.

In contrast, common stocks and foreign stocks can be significantly more volatile and are generally better suited for longer investment horizons due to their potential for price fluctuation. Short-term bonds, while less volatile than stocks, may not offer the immediate liquidity and accessibility that a money market fund can provide. Therefore, for investors looking for stability and ease of access in under a year's time, money market mutual funds stand out as the optimal choice.