In variable annuities, what do investment options typically include?

In variable annuities, investment options typically include stocks, bonds, and mutual funds. This variety allows policyholders to allocate their investments among different asset classes, which can help them manage risk and pursue growth potential according to their financial goals and risk tolerance. Variable annuities are designed to provide flexibility in investment choices, enabling individuals to invest in higher risk assets like stocks for potential long-term growth, while also allowing options for more conservative investments like bonds for preservation of capital.

This range of investment options is a defining feature of variable annuities, as it empowers investors to tailor their portfolios based on market conditions and personal preferences. The inclusivity of mutual funds further expands the investment horizons, as these funds can themselves include diversified stocks and bonds managed by professional fund managers. Thus, the structure of variable annuities facilitates both income generation and capital appreciation, making the inclusion of stocks, bonds, and mutual funds the correct and most appropriate answer.