Ch.12 · Model Portfolios and Asset Allocation · medium
An investor with a 10-year horizon wants to build a corpus for a child's higher education. Which of the following approaches is MOST appropriate?
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EXPLANATION
For a 10-year goal, equity via SIP is optimal for wealth creation. The gradual shift to debt 2-3 years before the goal date (a glide path approach) protects the accumulated corpus from a sudden equity market crash close to the redemption date.
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