n NISM Certifications
X NISM Series X
Medium

Which asset allocation approach involves long-term target allocations and aims to meet investor goals?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Strategic Asset Allocation

    Correct answer

  2. B

    Tactical Asset Allocation

  3. C

    Active Asset Allocation

  4. D

    Market Timing

Why this is the answer

SAA sets long-term target allocations based on investor objectives, not actively trying to exploit market timing.

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