Passlane Sign in

Ch.2 · Advantages and Limitations of Mutual Funds · hard

What is a Multi Asset Allocation Fund?

0% of students got this wrong

EXPLANATION

A Multi Asset Allocation Fund must invest in at least 3 asset classes with a minimum of 10% in each. Typically these include equity, debt, and gold or real estate. The flexibility of asset classes and allocation is determined by the fund manager.

A.A fund that invests in equity, debt, and at least one more asset class with minimum 10% in each [✓ Correct]

B.A fund that invests in multiple countries across different asset classes

C.A fund that invests in equity, debt, and gold with equal allocation

D.A fund that changes its asset allocation based on investor age

EXPLANATION

A Multi Asset Allocation Fund must invest in at least 3 asset classes with a minimum of 10% in each. Typically these include equity, debt, and gold or real estate. The flexibility of asset classes and allocation is determined by the fund manager.

Practising Chapter 2 one question at a time?

Try the full chapter — 100 questions, tracked score, weak area breakdown.

Practice Chapter 2 →Take the mock test →