Marco's parents invested $90,000 into two mutual funds: the ABC Canadian Bond Fund ($27,000) and...
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Marco's parents invested $90,000 into two mutual funds: the ABC Canadian Bond Fund ($27,000) and XYZ Canadian Equity Fund ($63,000) they have not made any additional purchases and neither of the funds have paid any distributions. At the time of their original investment, their stated risk tolerance indicated that a Balanced Growth (70% Equity / 30% Fixed Income) asset allocation was appropriate for them. However, a newly completed KYC indicated that they should have a Conservative (30% Equity / 70% Fixed Income) asset allocation. Both of the funds have performed very well as can be seen from the following chart:
Fund Original Investment Current Market Value ABC Canadian Bond Fund $27,000 $43,231 XYZ Canadian Equity Fund $63,000 $141,449 Marco's parents have booked an appointment with you to withdraw $32,000 from the account for completing basement renovations. Based on the above information, which specific buy and sell trades would you recommend?
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