Multiple choice

An investor has opted for a Systematic Transfer Plan. This means

  1. he can transfer on a periodic basis, a specified amount from one scheme to another

  2. he is required to invest a fixed sum periodically

  3. the investment would provide the benefit of rupee cost averaging

  4. he can transfer on a periodic basis a specified amount from the scheme to his bank account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

STP allows periodic transfers from one scheme to another, helping investors rebalance or move from debt to equity funds gradually. Option A accurately defines STP. Option B describes SIP (Systematic Investment Plan), and Option D describes withdrawal, not transfer.

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