Question 59 of 90
What does “Asset Allocation” mean?
A
Allocating a portfolio to cash
B
Allocating various mutual funds to investors
C
Allocating units to unit holders
D
Allocating a portfolio among different asset classes
Correct Option:
D
Explanation
Asset allocation is the process of dividing an investment portfolio among different asset classes, such as equity, debt, cash and cash equivalents, gold, or other assets, to achieve the desired balance between risk and return.