n NISM Certifications
MF MF Foundations
Medium

According to the Do's and Don'ts while selecting mutual fund schemes, what should investors consider?

Practice question from Mutual Funds Scheme Selection - Assessment Test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investing in schemes based on past performance alone

  2. B

    Selecting schemes based on tips from friends or family

  3. Considering their investor needs, preferences, and risk-profile

    Correct answer

  4. D

    Focusing only on schemes with the lowest Net Asset Value (NAV).

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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