AAFM CWM_LEVEL_2 Exam - Topic 1 Question 9 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 9
Topic #: 1

Section C (4 Mark)

Read the senario and answer to the question.

You have reviewed the investments of Nimita for the purview of retirement. You advise that a balance be restored from risk perspective and accordingly Rs. 15 lakh be shifted to a Debt MF scheme. You advise to further start SIPs immediately in the ratio of 60:40 in the newly started debt MF scheme and the existing Equity MF scheme for the next 21 years to accumulate a corpus so that the same sustains for the next 25 years if invested in an investment instrument yielding 7.50%. What approximate amount of SIPs should be made in Debt and Equity MF schemes?

ARs. 58,000 in Debt MF scheme & Rs. 39,000 in Equity MF scheme

BRs. 55,400 in Debt MF scheme & Rs. 37,000 in Equity MF scheme

CRs. 60,000 in Debt MF scheme & Rs. 40,000 in Equity MF scheme

DRs. 42,000 in Debt MF scheme & Rs. 28,000 in Equity MF scheme

Show Suggested Answer

Suggested Answer: C

by Kanisha at May 06, 2022, 09:44 AM

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25%

7 months ago

Recall a practice problem: SIPs use FV of an annuity with n=21 years at 7.5%; 60:40 split for debt/equity.

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