What is the primary objective of multi-asset allocation funds?

To invest solely in high-risk, high-reward assets To provide investors with a diversified portfolio across multiple asset classes To guarantee maximum returns regardless of market conditions To focus exclusively on short-term investment strategies

How do multi-asset allocation funds aim to mitigate investment risks?

By concentrating investments in a single asset class By employing complex financial derivatives By spreading investments across various asset classes with different risk profiles By relying solely on government bonds

What is a key advantage of multi-asset allocation funds for investors with limited financial expertise?

They offer guaranteed returns higher than any individual asset class They eliminate the need for any financial planning They provide a pre-built, diversified portfolio managed by professionals They allow investors to predict short-term market fluctuations accurately

How do multi-asset allocation funds handle adjustments to the portfolio in response to market changes?

They require investors to manually rebalance their investments They offer no mechanism for portfolio adjustments They employ automated rebalancing strategies to optimize asset allocation They rely on fixed asset allocation ratios regardless of market performance

What is the tax implication for investors who hold multi-asset allocation funds for less than three years?

They are exempt from any capital gains tax They are subject to long-term capital gains tax They are subject to short-term capital gains tax based on their income tax slab They are taxed at a flat rate regardless of their income level

What type of investor would typically find multi-asset allocation funds suitable?

Investors seeking the highest possible returns, regardless of risk Investors with a high-risk tolerance and short-term investment goals Investors seeking a balance of steady returns and managed risk Investors exclusively interested in investing in real estate