Case 2 Selection of a Mutual Fund as Part of a Retirement Plan Etta Mae Westbrook, a single mother of a six-year-old child, works in a marketing fi rm in Chestertown, Maryland, and is willing to invest $2000 to $3000 per year in a mutual fund. She wants the investment income to supplement her retirement pension starting in approximately 20 years and she has a moderate investment philosophy. Advise Etta Mae by responding to the following questions:

(a) Should Etta Mae invest in a mutual fund with a growth objective, such as one of the stock funds listed in Table 15.2, or one with an income objective, such as a bond fund? Why?