What is a recommended strategy for mitigating financial risk in mutual fund investments? Option: Timing the market to buy low and sell high, Relying solely on past performance of a fund, Investing all funds in a single high-return sector, Investing in a balanced way across multiple asset classes

<< Back

Hi

Show Ans

i

What is a recommended strategy for mitigating financial risk in mutual fund investments?

Timing the market to buy low and sell high

Relying solely on past performance of a fund

Investing all funds in a single high-return sector

Investing in a balanced way across multiple asset classes

<< Back

Hi

Show Ans

i

What strategy can help investors build a robust investment portfolio?

"Relying solely on past performance of mutual funds"

"Investing in a single high-performing mutual fund"

"Timing the market to buy low and sell high"

"Diversifying investments across different industries and asset classes"

<< Back

Hi

Show Ans

i

What is a recommended strategy for mitigating risk in a debt fund investment?

"Diversifying the investment portfolio"

"Timing the market to buy low and sell high"

"Investing only in government securities"

"Concentrating investments in a single high-yield bond"

<< Back

Hi

Show Ans

i

What is the recommended investment strategy generally?

Investing only in fixed income instruments

Investing only in real estate

Investing only in equity

Building a diversified portfolio across asset classes

<< Back

Hi

Show Ans

i

Why is portfolio diversification important in mutual fund investing?

"To maximize short-term profits"

"To spread risk across different assets"

"To guarantee high returns"

"To eliminate investment risk"

<< Back

Hi

Show Ans

i

What is the core principle behind diversifying investments in a stock portfolio?

Spreading investments across various sectors and asset classes to mitigate risk

Investing exclusively in dividend-paying stocks to ensure a steady income stream

Allocating funds solely to blue-chip stocks with a proven track record

Concentrating investments in high-growth sectors to maximize returns