What is the most accurate statement regarding Enid's investment options in her LIRA?

A segregated fund offers downside protection, which is a key characteristic that distinguishes it from other investment products. This downside protection is typically provided through a guarantee, often 75% to 100% of the investment amount at a specific maturity date or upon death of the policyholder. This means that even if the market value of the investments decreases, the policyholder is assured of receiving a certain minimum amount, which can significantly reduce the investment risk for individuals like Enid who may seek to protect their capital while still remaining invested in equity markets.

In the context of a Locked-In Retirement Account (LIRA), where preserving capital is often a priority, the downside protection feature of segregated funds can be particularly appealing. This is because LIRAs are designed to hold retirement savings that must eventually provide income, making risk management an important consideration for investors planning for retirement.

While other investment types, such as mutual funds, can potentially offer high returns, they typically do not include the same level of capital protection, which makes the segregated fund's downside protection more relevant to Enid's needs. Additionally, the notion that investments must be in low-risk assets only is not accurate; within a LIRA, investors can choose from a variety of asset classes, including