Test your understanding of this topic
Q
1
.
Multi asset funds are funds that
a. Invest in multiple assets within an asset class
b. Invest in multiple asset classes
c. Invest in multiple funds that invest in an asset class
Q
2
.
A key benefit of valuation based asset allocation funds is that
a. It cuts out investor emotions that usually prevent him from buying low and selling high
b. It gives a disciplined framework to the fund manager to increase and decrease equity allocations based on how expensive or inexpensive the overall market is
c. It allows an advisor to review such portfolios less frequently and thus improve his productivity, without compromising his client’s interests
d. All of the above
Q
3
.
Multi-manager funds are
a. Funds which have more than one fund manager managing them
b. Client portfolios which are managed by multiple advisors
c. Fund of fund products where one fund manager invests into other mutual funds based on best in class criteria.
Q
4
.
A target date fund is
a. A closed ended fund that gets liquidated on a specific target date
b. A fund that shifts its asset allocation to make it progressively less volatile as it gets closer to its target date
c. A fund which is supposed to mobilise a target amount within a specified date
Q
5
.
The key benefit of an embedded advice product is
a. It allows investors who do not have access to good advice, to benefit from a disciplined investment approach
b. It allows advisors to service many more retail investors without worrying about compromising their interests
c. It allows advisors and distributors to conduct retail business in a cost effective and compliant manner.
d. All of the above