Achieve Financial Brilliance with the 2025 CFC Exam – Crack the Code to Consulting Success!

The correct choice is based on the types of investment options typically available within a variable annuity during the free-look period. In many cases, when investors purchase a variable annuity, they have the opportunity to allocate their premium among various investment options, which usually include equity funds, bond funds, and money market funds, as these options align with the objectives of variable annuities.

Value funds, while a subset of equity funds, are not distinctly listed as an investment option under the typical variable annuity structure. Instead, they fall into the general category of equity funds. What sets the other categories apart is their specific investment focus and risk profile. Equity funds aim for growth and thus can vary in types including growth, blend, and value strategies. Since value funds represent a specific investment style rather than a separate type of investment vehicle, it is not typically recognized as an independent choice within the context of investment options provided during the free-look period of a variable annuity.

Therefore, the answer accurately reflects that value funds may not be specifically listed as a distinct option for accumulating premium funds during this time frame, whereas equity, bond, and money market funds are all legitimate selections for allocation in a variable annuity.