To achieve the objective of capital appreciation, funds are primarily or exclusively invested in a diversified stock portfolio and stock-based mutual funds, regardless of current income. The objective of achieving the capital appreciation objective is further facilitated by reinvesting the income generated by the portfolio and limiting withdrawals in the event of adverse market conditions. If the individuals risk tolerance is a bit conservative compared to most people who opt for this portfolio, the funds can also be invested in money market funds, certificates of deposit, high quality bonds of a duration of one to fifteen years, inflation-protected bonds and high bonds. -yield bond funds to smooth out certain stock fluctuations