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Ch.9 · KYC and Folio Management · hard

Which of the following correctly describes an 'In-specie' redemption in mutual funds?

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EXPLANATION

In-specie redemption involves transferring the underlying portfolio securities directly to the investor instead of cash. This is rare and primarily applicable to institutional investors in certain fund structures.

A.Redemption processed in foreign currency for NRI investors

B.Redemption through a physical cheque rather than NEFT

C.Partial redemption of units in multiple installments

D.Redemption where the investor receives the underlying securities instead of cash [✓ Correct]

EXPLANATION

In-specie redemption involves transferring the underlying portfolio securities directly to the investor instead of cash. This is rare and primarily applicable to institutional investors in certain fund structures.

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