Ch.6 · ARN and EUIN Rules · easy

What is goal-based investing as a concept used in mutual fund distribution?

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EXPLANATION

Goal-based investing links each investment to a specific financial goal (e.g., retirement in 25 years, child's college in 10 years, vacation in 2 years). Schemes are selected based on the goal's time horizon and risk tolerance: equity for long-term goals, hybrid for medium-term, and debt/liquid for short-term goals.

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