Multiple choice

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

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

  2. Investment in income and gilt funds should be around 65% - 80%

  3. Investment in liquid funds should be around 5%

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In the accumulation phase (working years), investors should have high equity allocation (typically 65-80% or more) for long-term growth. Option A's 15-30% equity is too conservative for accumulation phase (that's the distribution phase allocation). Options B and C are also incorrect allocations for this life stage, making 'None of the above' the right choice.

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