Decisions in Tactical Asset Allocation are taken on the basis of ____.
A
Likely behaviour of the markets
B
Risk profile of the investor
C
Income level of the investor
D
All of the above
Correct Option:
A
Explanation
Tactical Asset Allocation (TAA) involves making short-term adjustments to a portfolio's asset mix based on expected market conditions and economic outlook. An investor's risk profile is primarily considered while determining Strategic Asset Allocation (SAA), which establishes the long-term asset allocation.
