Question
10 of
10
Question Palette
In a Life Cycle Fund, as the fund moves toward maturity:
A
The equity component increases, and the debt component decreases.
B
The equity component decreases, and the debt component increases.
C
The equity component increases, and the gold component decreases.
D
The equity component decreases, and the gold component increases.
Correct Option:
B
Explanation
Life Cycle Funds gradually reduce equity exposure and increase debt exposure as they approach maturity to lower investment risk.
