Question

How can mutual fund schemes be utilized for asset allocation?

a.

By investing only in equity funds

b.

By investing only in debt funds

c.

By allocating funds to equity and debt simultaneously

d.

By avoiding asset allocation

Posted under IC 89 Management Accounting

Answer: (c).By allocating funds to equity and debt simultaneously Explanation:One can use mutual fund schemes for asset allocation by investing in equity and fixed income instruments in different proportions.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How can mutual fund schemes be utilized for asset allocation?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Who decides the proportion of allocations of funds in various assets in mutual fund schemes?

View solution

Q. What is highlighted as a tax efficiency benefit of investing in mutual funds?

View solution

Q. What is an important consideration for mutual fund investors regarding the performance of the industry?

View solution

Q. How are mutual funds classified according to their investment objectives?

View solution

Q. What is the main objective of Balanced Funds?

View solution

Q. What is the characteristic of Sector Funds?

View solution

Q. What is the investment focus of Large-cap Funds?

View solution

Q. What is the primary characteristic of Mid/Small-cap Funds?

View solution

Q. What is the key feature of Equity-linked Savings Scheme (ELSS)?

View solution

Q. What is one of the advantages of mutual funds?

View solution

Q. How does diversification benefit investors in mutual funds?

View solution

Q. What is an advantage of mutual funds in terms of administration?

View solution

Q. What is an advantage of investing in mutual funds in terms of costs?

View solution

Q. In open-ended schemes, when can investors get their money back?

View solution

Q. How is the yearly return on a mutual fund calculated?

View solution

Q. What does Sharpe's Ratio measure in the evaluation of mutual fund performance?

View solution

Q. Who developed Sharpe's Ratio?

View solution

Q. What does a higher Sharpe's Ratio indicate in the context of mutual fund performance?

View solution

Q. What does a Sharpe's Ratio of 1 indicate?

View solution

Q. What does Jensen's Alpha Ratio measure in the context of mutual fund performance?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

Mechanics of Materials

Unlock the principles of Mechanics of Materials with our specialized category. Dive...

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....