Multiple choice

Which of the following is true about Jacob's Model Portfolio for investors in distribution phase?

  1. Investment in diversified equity should be around 15% -30%

  2. Investment in income and gilt funds should be around 15% -30%

  3. Investment in liquid funds should be around 15% -30 %

  4. None of the above
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A Correct answer
Explanation

In the distribution phase (retirement), investors prioritize regular income and capital preservation over growth. Jacob's Model Portfolio therefore recommends only 15-30% in diversified equity, with the majority in income and gilt funds for stable returns. Higher equity allocation would expose retirees to unnecessary volatility.

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