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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Comparison of Products Across Categories

Ms Kavita, aged 28, has a 30-year horizon for retirement and a high risk capacity and tolerance. Comparing asset classes for her long-term retirement corpus, which allocation approach is most consistent with her profile?

A large equity allocation with periodic rebalancing suits her best. With 30 years to retirement and high risk capacity, she can ride out volatility, and equity has historically offered the strongest inflation-beating growth. Cash, deposits or a single asset like gold would risk lower real returns or concentration.

  1. AA large equity allocation, rebalanced periodicallyCorrect
  2. BEntirely savings bank balance for safety
  3. CEntirely a single 5-year bank deposit renewed repeatedly
  4. DEntirely physical gold as the only holding

Explanation

Over long horizons, equity has historically offered the highest inflation-beating real returns, and a young client with high risk capacity can bear volatility. Periodic rebalancing controls risk. Savings balances and deposits risk lagging inflation, and a single-asset gold holding is concentrated.

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