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

Which of the following statements about perpetual SIPs is TRUE?

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EXPLANATION

A perpetual SIP has no fixed end date and continues until the investor actively cancels it. Cancellation typically requires a notice period (usually 30 days before the next SIP date).

A.Perpetual SIPs automatically terminate after 30 years

B.Perpetual SIPs are not recognized by SEBI regulations

C.Perpetual SIPs are only available in liquid funds

D.Perpetual SIPs continue indefinitely until the investor submits a written cancellation [✓ Correct]

EXPLANATION

A perpetual SIP has no fixed end date and continues until the investor actively cancels it. Cancellation typically requires a notice period (usually 30 days before the next SIP date).

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