NISM-Series V-A: Mutual Fund Certification Exam Notes
Page 61 Of 63
Go to:
A short holding period may indicate that the fund manager is looking for tactical investments to take advantage of short-term market opportunities rather than identifying and investing in fundamentally strong companies for the long-term.
A portfolio should be divided into core and satellite portfolios. The core portfolio will be invested according to the long term needs and goals of the investor.
The satellite portfolio will be invested to take advantage of expected short-term market movements.
For example, a diversified equity fund, large cap, mid-cap funds, among others may form part of the core portfolio since they generate long-term returns in broad alignment with the markets.
Sector funds on the other hand do well cyclically, and investors will consider investing in them when the economic factors are positive for a particular sector.
MODELEXAM® 
www.realsoftinfoplan.com