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

An investor registers a monthly SIP but the SIP date falls on a public holiday. What happens?

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EXPLANATION

If the SIP date falls on a non-business day (holiday or weekend), the SIP instalment is processed on the next business day. The NAV of that next business day applies.

A.The SIP instalment is skipped for that month

B.The instalment is processed on the immediately preceding business day

C.The instalment is processed on the next business day [✓ Correct]

D.The investor must manually resubmit the request for the next available date

EXPLANATION

If the SIP date falls on a non-business day (holiday or weekend), the SIP instalment is processed on the next business day. The NAV of that next business day applies.

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