Question

What should retail investors be aware of regarding ratings of unit linked funds?

a.

Ratings are indicative of future performance

b.

Ratings are a perfect yardstick for investment decisions

c.

Ratings do not consider operational practices

d.

Ratings may vary based on premium payment frequency

Posted under IC 14 Regulations of Insurance Business

Answer: (a).Ratings are indicative of future performance Explanation:Retail investors should be aware that ratings of unit linked funds are not indicative of future performance. Additionally, they should understand the factors backing such ratings, including operational practices. This knowledge is essential for making informed investment choices.

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Q. What should retail investors be aware of regarding ratings of unit linked funds?
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