Speculators avoid diversification because it reduces the potential for both large losses and large gains, which they seek to achieve significant wealth. The feedback from the document states:

"Diversification affects the returns that investors hope to earn. Diversification tends to reduce the probability of both very large losses and very large gains. Speculators tend to avoid diversification for this reason. Great wealth can be achieved only through an absence of diversification."

Without the actual fund performance table (DEF, GHI, ABC, JKL), the CSC method of fund recommendation is:

Select the fund with the best risk-adjusted return (Sharpe ratio, quartile rankings, consistency).

Avoid funds with high volatility or inconsistent performance.

If you provide the return & performance details (quartile/Sharpe data) for DEF, GHI, ABC, and JKL, I can give the precise fund recommendation.

Sachin is experiencing interest rate risk, which is the risk that changes in interest rates will affect the value of fixed income securities. When interest rates rise, bond prices fall, and vice versa. This is because investors will demand a higher yield to invest in bonds that pay a lower coupon rate than the prevailing market rate. Therefore, if the Bank of Canada makes it more expensive to borrow money, the existing bonds in Sachin’s fund will become less attractive and their prices will drop. Interest rate risk is measured by a fixed income security’s duration, with longer-term bonds having a greater price sensitivity to rate changes. Sachin can reduce his interest rate risk by diversifying his bond maturities or hedging using interest rate derivatives1.

Canadian Investment Funds Course, Chapter 3: Risk and Return2

Quartile rankings divide funds into four equal groups, with the 1st quartile being the top 25%. A rank of 54 out of 100 places the fund in the 3rd quartile (51–75). The feedback from the document states:

"A quartile sorts performance into four equal parts or blocks. The quartiles are given a rank – 1, 2, 3 or 4 – to show how well a certain fund’s performance compared to all other funds in the peer group, with the 1st quartile representing the top 25 performers."

For non-registered accounts, the mandatory personal information includes the client’s full legal name and permanent address, while date of birth and social insurance number are recommended but not required. The feedback from the document states:

"The first step as a dealing representative is to obtain a client’s personal data including full legal name, permanent and mailing address, social insurance number and date of birth. While a permanent address is mandatory, providing a different mailing address is optional. Neither the social insurance number nor date of birth are mandatory for non-registered accounts, but both are highly recommended."

A Trusted Contact Person (TCP) is someone who the client authorizes their financial advisor to contact in limited circumstances, such as when the client is vulnerable, has a health issue, or cannot be reached. A TCP should be someone who the client trusts and who is mature and can handle difficult conversations about the client’s personal situation. Often, a TCP is someone who is involved with providing care for the client who requires personal assistance, such as a family member, a friend, or a caregiver. A TCP does not have a financial interest in the client’s account or assets, does not have the authority to make financial decisions on behalf of the client, and does not need to simplify financial concepts for the client