What are the two essential prerequisites for building any investment portfolio?

"Health and Term Insurance" "Emergency Corpus and Investment Strategy" "Risk Assessment and Financial Goals" "Emergency Corpus and Insurance Coverage"

According to the author, what is the recommended minimum emergency corpus?

"3 months of expenses" "6 months of expenses" "1 year of expenses" "Variable, based on individual circumstances"

Which of the following is NOT a defining attribute of a financial goal?

"The quantum of funds required" "The estimated time to accumulate funds" "The current age of the person" "The risk tolerance of the investor"

Why does the author recommend avoiding multiple mutual funds of the same subcategory?

"To minimize portfolio overlap and redundancy" "To maximize diversification across asset classes" "To reduce the overall expense ratio of the portfolio" "To simplify portfolio management and tracking"

What is the recommended approach for a long-term financial goal like retirement?

"Invest aggressively in high-growth small-cap funds" "Focus on capital preservation with low-risk debt funds" "Adopt a balanced approach with a mix of equity and debt" "Invest primarily in index funds and large-cap funds"

What is the purpose of shifting funds to a debt fund as you approach the target year of a financial goal?

"To enhance returns by capitalizing on debt market opportunities" "To mitigate sequence risk and protect accumulated wealth" "To reduce the overall risk profile of the portfolio" "To comply with regulatory requirements for long-term investments"

What type of fund is recommended as a 'carrier fund' for a lump sum investment that needs to be deployed gradually?

"Balanced Fund" "Short Duration Fund" "Liquid Fund" "Corporate Bond Fund"