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

What is the NAV applicable for an STP transfer from a debt fund to an equity fund?

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EXPLANATION

An STP has two legs: a redemption from the source scheme and a purchase in the target scheme. Each leg follows the applicable cut-off time rules independently for that scheme type on the STP execution date.

A.The applicable cut-off NAV for each scheme independently on the date of the STP execution [✓ Correct]

B.Debt fund NAV of the day before the transfer date; equity fund NAV of the transfer date

C.Average of the previous 5 days' NAV for both schemes

D.Same NAV is applied to both schemes as STP is an internal transaction

EXPLANATION

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