Which of the following statements about investment objectives is FALSE?

Study for the Variable Universal Life/Universal Life Plan (VUL/ULP) Exam. Prepare with flashcards and multiple choice questions, each question is accompanied by helpful hints and explanations. Ace your exam!

The statement about investing in fixed deposits providing high and guaranteed returns is misleading, making it the false statement in this context. While fixed deposits are indeed considered low-risk financial instruments that typically offer guaranteed returns, the returns they provide are usually lower compared to other investment options such as stocks or real estate.

In the realm of investment objectives, the key point is that while fixed deposits offer security and predictability, they often do not meet the criteria of providing high returns. Investors often seek to maximize returns based on their risk tolerance and investment goals, and fixed deposits typically do not align with those high-return expectations.

The other statements highlight valid investment objectives. Investing can indeed support a comfortable standard of living by potentially growing wealth over time. It is also common for investments to be directed toward funding children's higher education, as they can yield returns that help offset rising education costs. Additionally, while not uniformly true for all commodities, investing in certain commodities can yield income through trade or assets that appreciate in value, providing an avenue for regular income generation.

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