AAFM Exam CWM_LEVEL_2 Topic 4 Question 88 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 88
Topic #: 4

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?

ARs. 58,000 in Debt MF scheme & Rs. 39,000 in Equity MF scheme

BRs. 55,400 in Debt MF scheme & Rs. 37,000 in Equity MF scheme

CRs. 60,000 in Debt MF scheme & Rs. 40,000 in Equity MF scheme

DRs. 42,000 in Debt MF scheme & Rs. 28,000 in Equity MF scheme

Show Suggested Answer

Suggested Answer: C

by Malcom at Sep 12, 2024, 10:25 PM

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Cordelia

8 days ago

Woah, this is some serious financial wizardry! I'm just gonna close my eyes and point at an answer. Hopefully, it's the right one, or at least the one that makes me sound like a savvy investor.

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Rasheeda

11 days ago

But if we calculate the ratio of 60:40, it does make sense to go with option A.

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Belen

11 days ago

Hmm, that's a tricky one. I think I'll go with C, just because it's the most straightforward answer. It's like the old saying goes: 'When in doubt, choose the option that looks the most like a balanced portfolio.'

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Jolene

3 hours ago

I think C is the best choice too. It seems like a balanced approach.

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Vanesa

17 days ago

I disagree, I believe the answer is C) Rs. 60,000 in Debt MF scheme & Rs. 40,000 in Equity MF scheme.

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Rasheeda

26 days ago

I think the answer is A) Rs. 58,000 in Debt MF scheme & Rs. 39,000 in Equity MF scheme.

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