NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
Under SEBI categorisation, which statement about a Dynamic Asset Allocation or Balanced Advantage Fund is correct?
A Dynamic Asset Allocation or Balanced Advantage Fund dynamically shifts its allocation between equity and debt according to its model, with no fixed equity minimum, unlike an aggressive hybrid fund with defined ranges.
- AIt must hold at least 65% in equity at all times
- BIt dynamically manages allocation between equity and debtCorrect
- CIt invests only in gold and equity
- DIt must invest 80% in debt instruments
Explanation
A Balanced Advantage Fund dynamically manages allocation between equity and debt, with no fixed minimum or maximum equity limit. A fixed 65% equity floor is not required, so the first option is wrong. The other options describe different mandates.
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