Ch.12 · Model Portfolios and Asset Allocation · medium
Which of the following is an example of 'mis-selling' in mutual fund distribution?
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EXPLANATION
Recommending a small-cap fund — highly volatile, illiquid, and unsuitable for capital preservation — to a 65-year-old retiree who needs stable capital for medical expenses is a classic case of mis-selling. It prioritises commission potential over investor suitability and violates AMFI's Code of Conduct.
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