Multiple choice

A very high proportion of investment in all types of equity funds is advisable for investors

  1. in distribution phase

  2. in accumulation phase

  3. in transition phase

  4. who are wealthy affluent individuals?
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Investors in the accumulation phase have a long investment horizon and can tolerate higher volatility for potentially higher returns, making high equity allocation advisable. Distribution phase investors need income stability. Transition phase requires balanced approach. Affluent individuals' allocation depends on their specific situation, not wealth alone. Time horizon determines equity exposure.

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