Question 8 of 9
Which of the following cannot be considered when selecting a scheme’s benchmark?
A
The mutual fund scheme's investment objective
B
The investment strategy of the mutual fund scheme
C
The scheme's asset allocation pattern
D
The scheme's past returns
Correct Option:
D
Explanation
A scheme's benchmark should be selected based on its investment objective, investment strategy, and asset allocation pattern. Past returns are not an appropriate criterion for selecting a benchmark because they do not reflect the intended investment universe or strategy.
