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Options
- A
Lower ; highly concentrated portfolio
-
Higher ; highly concentrated portfolio
Correct answer
- C
Lower ; lower expenses of the fund
- D
Higher ; investments in debt securities
Why this is the answer
Among the equity funds, some schemes may have a portfolio concentrated in a few stocks. Such scheme category is known as “Focused funds”. These schemes carry higher risk than a diversified fund, due to higher concentration among smaller numbers of stocks.
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