Ch.5 · SID, SAI and KIM Documents · medium
What is a 'trigger facility' in mutual fund schemes?
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EXPLANATION
A trigger facility allows investors to automate certain transactions — like redeeming or switching units — when the NAV reaches a pre-set target (e.g., profit booking at 15% gain) or falls to a minimum level (stop-loss). It helps investors implement systematic profit-booking strategies without manual intervention.
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