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

Which type of STP transfers only the growth component (appreciation above a certain base value) from source to target scheme?

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EXPLANATION

Capital Appreciation STP transfers only the appreciation above a defined base NAV from the source fund to the target fund, keeping the base investment intact and systematically deploying only profits into the equity scheme.

A.Fixed STP

B.Flexi STP

C.Capital Appreciation STP [✓ Correct]

D.Trigger STP

EXPLANATION

Capital Appreciation STP transfers only the appreciation above a defined base NAV from the source fund to the target fund, keeping the base investment intact and systematically deploying only profits into the equity scheme.

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