Question 30 of 90
Identify the true statement(s) with respect to the benchmark of mutual fund schemes. A) For an International Equity Fund, the ideal benchmark is the BSE 500 Index because it is a broad-based index covering 500 companies. B) For a Gold ETF, gold prices are the ideal benchmark.
A
Only A is correct
B
Only B is correct
C
Both A and B are correct
D
Neither A nor B are correct
Correct Option:
B
Explanation
An International Equity Fund should be benchmarked against an appropriate international index, not the BSE 500 Index, which tracks Indian equities. A Gold ETF is appropriately benchmarked against gold prices.
