What does SIP stand for in the context of mutual funds?

Systematic Investment Plan Systematic Income Plan Standard Investment Portfolio Secure Investment Protocol

What is the primary purpose of a Systematic Transfer Plan (STP)?

To withdraw funds from a mutual fund on a regular basis To transfer funds from one mutual fund scheme to another To invest a fixed amount in a mutual fund at regular intervals To guarantee a specific rate of return on a mutual fund investment

Which of the following is a key benefit of a Systematic Withdrawal Plan (SWP)?

It allows investors to time the market for optimal returns It provides a consistent stream of income from mutual fund investments It eliminates the tax implications of mutual fund withdrawals It guarantees the preservation of capital invested in mutual funds

According to the article, which investment strategy is generally recommended for long-term capital appreciation?

SWP STP SIP None of the above

What is the primary difference between SIP and STP?

SIP is for investment, while STP is for transferring funds between schemes SIP is for high-risk investments, while STP is for low-risk investments SIP is managed by individual investors, while STP is managed by financial advisors SIP is suitable for short-term goals, while STP is suitable for long-term goals