Question

Mohan Gupta is the portfolio manager of an India-based equity fund. Which of the following factors is most likely to influence his investment decisions?

a) Population growth in India
b) Inflation rate in the European Union
c) Political stability in South America
d) Currency exchange rates between the Indian Rupee and the Euro

Answer 1

The factor that is most likely to influence Mohan Gupta's investment decisions as the portfolio manager of an India-based equity fund is currency exchange rates between the Indian Rupee and the Euro.

Step-by-step explanation:

The factor that is most likely to influence Mohan Gupta's investment decisions as the portfolio manager of an India-based equity fund is d) Currency exchange rates between the Indian Rupee and the Euro.

Currency exchange rates play a crucial role in international investments. As an India-based equity fund, Gupta would need to consider the exchange rate between the Indian Rupee and the Euro when making investment decisions.

For example, if the Indian Rupee strengthens against the Euro, it would make European investments more expensive and less attractive. On the other hand, if the Indian Rupee weakens against the Euro, it would make European investments cheaper and more attractive.