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Options
- A
He should list the best performing funds for the investor to select
-
He should set the financial goals of the investor
Correct answer
- C
He should invest the amount in a liquid fund and set a Systematic Transfer Plan in good equity funds
- D
He should list good equity funds with the lowest expense ratio for the investor to select
Why this is the answer
The first step in building a mutual fund portfolio is to understand and set the financial goals of the investor. This ensures that the investment strategy aligns with the investor’s needs, such as saving for retirement, purchasing a home, or funding education. Only after defining the goals should the selection of funds begin.
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