n NISM Certifications
NSM General NISM
Medium

Why is asset allocation considered more important than selecting individual funds?

Practice question from B1 Intermediate Session 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Because fund selection has no impact on returns

  2. Because asset mix determines most of the portfolio outcome

    Correct answer

  3. C

    Because fund managers cannot generate returns

  4. D

    Because only debt investments are reliable

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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