n NISM Certifications
V-A NISM Series V-A
Medium

Which strategy can be used to ensure that a mutual fund scheme is suitable to the investor's needs and situation?

Practice question from NISM Series V A - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Indexation

  2. B

    Dividend Stripping

  3. Asset Allocation

    Correct answer

  4. D

    Tax harvesting

Why this is the answer

Asset allocation involves distributing investments across various asset classes (equity, debt, etc.) to align with the investor's financial goals, risk tolerance, and time horizon. It is a crucial strategy for ensuring suitability.

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