Ch.2 · Advantages and Limitations of Mutual Funds · medium
Which of the following mutual fund schemes would be MOST suitable for a first-time investor with a 10-year horizon and moderate risk appetite?
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EXPLANATION
A Large Cap Equity Fund is most suitable — it invests in the top 100 companies by market cap (relatively stable), has a long-term wealth creation orientation matching the 10-year horizon, and carries moderate risk compared to mid/small cap or credit risk funds. A first-time equity investor benefits from large cap stability.
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