Ch.12 · Matching Schemes to Investor Profiles · medium
During a portfolio review, which of the following is a valid reason to REPLACE an existing mutual fund scheme?
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EXPLANATION
Valid reasons to replace a fund include: persistent long-term underperformance vs benchmark and peers, fundamental change in fund mandate or strategy, change in fund manager with resulting strategy shift, or a change in the investor's own goals or risk profile. Short-term NAV dips are not valid reasons to exit.
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