Passlane Sign in

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

Which of the following best describes a Systematic Transfer Plan (STP)?

0% of students got this wrong

EXPLANATION

STP facilitates periodic transfer of a fixed or variable amount from one scheme (typically a debt/liquid fund) to another scheme (typically equity) within the same AMC, combining rupee-cost averaging with liquidity management.

A.A plan to transfer SIP installments between bank accounts

B.Regular transfer of a fixed amount from one mutual fund scheme to another within the same AMC [✓ Correct]

C.An automatic switch between AMCs on a scheduled basis

D.A plan to transfer units from a regular plan to a direct plan at fixed intervals

EXPLANATION

STP facilitates periodic transfer of a fixed or variable amount from one scheme (typically a debt/liquid fund) to another scheme (typically equity) within the same AMC, combining rupee-cost averaging with liquidity management.

Practising Chapter 9 one question at a time?

Try the full chapter — 80 questions, tracked score, weak area breakdown.

Practice Chapter 9 →Take the mock test →