In the context of pension fund investments, Asset Class E, which primarily includes equity and equity-related instruments, carries the highest exposure to market volatility. This asset class is directly linked to the stock market, making it highly sensitive to market fluctuations, economic cycles, investor sentiment, and global financial trends. While Asset Class E has the potential to generate higher returns over the long term, it also comes with increased risk due to the inherent unpredictability of equity markets. In contrast, other asset classes like Class C (corporate debt instruments) and Class G (government securities) are relatively more stable and less volatile, making them suitable for conservative investors seeking capital preservation.

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