Options
- A
Rebalancing of the portfolio periodically to remove the under-performers from the portfolio.
- B
Select the lowest risks assets and invest most of the money in those assets
- C
See the historical returns and choose the best performers so that there is no under performance
-
See the risk preference of the individual and allocate assets across different asset classes in the same proportion that reflects his risk and return preferences
Correct answer
Why this is the answer
Asset allocation should be aligned with individual risk appetite and goals, with periodic rebalancing to maintain this balance.
Test yourself for real
Take a full NISM Series XVII mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.