The KYC of Linda is given below for her new investment account:

Risk Tolerance: Low

Investment Objective: Income and Growth

Investment Knowledge: Good

Time Horizon: 3-5 Years

Age: 60 Years

Net Worth; 300-500k

She came with $65,000 cheque to invest in this account for retirement and has not any room for RRSP or TFSA contribution. You may choose any combination of following investments to design her portfolio:

5-Years TD Bonus Rate GIC with return of 1.5%

TD Money Market Fund with an average annual historical return of 0.90%

TD Bond Fund with an average annual historical return of 4.6%

TD Canadian Equity Fund with an average annual historical return of 6.4%

TD Canadian Dividend Fund with an average annual historical return of 5.87%

TD Energy Fund with an average annual historical return of 8.35%

TD US Equity Fund with an average annual historical return of 17.31%

TD Global Equity Fund with an average annual historical return of 14.10%

1. You need to design a tax efficient investment portfolio for her. (5 Marks)
2. Let her know expected return on investment. (2 Marks)
3. Explain why this portfolio is good for her? (3 Marks)