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.
