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AAFM Exam CWM_LEVEL_2 Topic 4 Question 71 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 71
Topic #: 4
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

You have reviewed the investments of Nimita for the purview of retirement. You advise that a balance be restored from risk perspective and accordingly Rs. 15 lakh be shifted to a Debt MF scheme. You advise to further start SIPs immediately in the ratio of 60:40 in the newly started debt MF scheme and the existing Equity MF scheme for the next 21 years to accumulate a corpus so that the same sustains for the next 25 years if invested in an investment instrument yielding 7.50%. What approximate amount of SIPs should be made in Debt and Equity MF schemes?

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Suggested Answer: C

Contribute your Thoughts:

Ena
5 months ago
That's a valid point, Sharen. It's important to consider the risk profile of the investor as well.
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Sharen
6 months ago
I think the answer is A. Rs. 58,000 in Debt MF and Rs. 39,000 in Equity MF seems more conservative.
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Latrice
6 months ago
I agree with Ena. Rs. 60,000 in Debt MF and Rs. 40,000 in Equity MF sounds like a good allocation.
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Ena
6 months ago
Because the ratio of 60:40 between Debt and Equity MF schemes seems reasonable for a balanced approach.
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Dudley
6 months ago
Why do you think that?
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Ena
7 months ago
I think the answer is C.
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