NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
Under SEBI's categorisation of mutual fund schemes, which of the following describes a Dynamic Asset Allocation or Balanced Advantage Fund?
A Dynamic Asset Allocation or Balanced Advantage Fund is a hybrid scheme that dynamically shifts its allocation between equity and debt, instead of holding a fixed proportion, according to the fund's model and market conditions.
- AIt invests a fixed 65% in equity and 35% in debt at all times
- BIt dynamically manages allocation between equity and debtCorrect
- CIt invests only in overseas equity indices
- DIt invests only in gold exchange traded funds
Explanation
SEBI categorises Dynamic Asset Allocation or Balanced Advantage Funds as hybrid schemes that manage the equity and debt mix dynamically. A fixed 65:35 split is not the defining feature, and the other options describe different scheme types.
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