Ch.9 · KYC and Folio Management · hard

What is a 'trigger-based STP' in mutual funds?

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EXPLANATION

A trigger-based STP executes the transfer from the source scheme to the target scheme when the NAV of the source or target fund hits a predefined trigger level (up or down), enabling event-driven rebalancing.

A.An STP activated only when the investor's bank account receives salary credits

B.An automatic transfer triggered when the source fund's NAV crosses a predefined threshold [✓ Correct]

C.A transfer executed only during market corrections of more than 10%

D.An STP that activates on specific festival or calendar dates

EXPLANATION

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