Ch.9 · Systematic Transactions — SIP, SWP, STP · easy

A switch transaction in mutual funds refers to:

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EXPLANATION

A switch involves redeeming units from one scheme and investing the proceeds into another scheme within the same AMC, processed at respective scheme NAVs.

A.Changing the nomination in a folio

B.Converting regular plan units to direct plan units across AMCs

C.Moving units between two different AMCs

D.Transferring units from one scheme to another within the same AMC [✓ Correct]

EXPLANATION

A switch involves redeeming units from one scheme and investing the proceeds into another scheme within the same AMC, processed at respective scheme NAVs.

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