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Options
- A
Deciding which and how many mutual fund schemes to invest in
- B
Finalizing which mutual fund schemes would deliver the highest returns in future
-
Deciding how to invest money across various asset categories in line with one’s risk profile, financial objectives, and current situation
Correct answer
- D
Deciding which asset category would outperform the others and investing in it
Why this is the answer
Asset allocation refers to the strategy of distributing investments across different asset categories (equities, bonds, cash, etc.) to balance risk and achieve financial goals based on an investor’s risk profile, time horizon, and objectives.
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