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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Portfolio Construction Process

Ms. Anjali Rao, 28, is a salaried professional with a high risk appetite, a 25-year horizon for retirement, and stable income. Which asset allocation approach is most consistent with her profile?

An equity-oriented allocation with a smaller share in debt and gold suits her. A 25-year horizon, stable income and high risk appetite give her both the ability and willingness to take risk, and equity offers the growth needed for retirement, unlike conservative debt-heavy or deposit-only options.

  1. APredominantly debt with a small equity allocation
  2. BEntire corpus in bank fixed deposits
  3. CEquity-oriented allocation, with a smaller share in debt and goldCorrect
  4. DEntire corpus in liquid funds for capital safety

Explanation

A long horizon, stable income and high risk tolerance indicate both ability and willingness to bear risk, so an equity-oriented allocation suits her for long-term growth. The other options are conservative choices that would likely fail to beat inflation over 25 years.

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