Multiple choice

Debt schemes are popular because

  1. the Indian stock market is always going down

  2. the returns are more predictable

  3. most investors are always in debt

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Debt schemes provide more predictable returns compared to equity, which appeals to risk-averse investors and those needing stable income. Equity returns are volatile (unpredictable). Statement A is false - markets aren't always down. Statement C confuses debt schemes with personal debt. Predictability and stability are the key attractions of debt instruments.

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