Following points mentioned below Advisor assumes to be true :-
1) Investing in mutual funds reduces portfolio risk.
2) Past investment performance is often related to future investment prospects.
Conclusion :-
Advisor selects a group of mutual funds that meet the client’s objectives and then invest the client’s assets in the fund that has delivered the highest returns in this group over the past 2 years. So, client can earn high returns with low risk.
Reasoning :-
The strategy of the investment
...
1) Investing in mutual funds reduces portfolio risk.
2) Past investment performance is often related to future investment prospects.
Conclusion :-
Advisor selects a group of mutual funds that meet the client’s objectives and then invest the client’s assets in the fund that has delivered the highest returns in this group over the past 2 years. So, client can earn high returns with low risk.
Reasoning :-
The strategy of the investment
...
.jpg)
