Ch.12 · Model Portfolios and Asset Allocation · medium
A retired investor aged 65 needs regular monthly income and cannot afford to lose principal. Which fund combination is MOST appropriate?
0% of students got this wrong
EXPLANATION
A retired investor with low risk tolerance should prioritise capital preservation and income. Short-duration debt funds offer stability with low interest rate risk. An SWP provides regular cash flow without requiring the fund to be in IDCW mode. Long-duration or equity funds are inappropriate given the capital preservation requirement.
Practising Chapter 12 one question at a time?
Try the full chapter — 50 questions, tracked score, weak area breakdown.