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

"Systematic Transfer Plan" "Standard Trading Procedure" "Security Transaction Protocol" "Strategic Trading Platform"

What is the primary advantage of using an STP compared to a lump sum investment in mutual funds?

"Guaranteed higher returns" "Elimination of market risk" "Mitigation of market risk through cost averaging" "Lower expense ratios"

Which type of mutual fund is generally considered more suitable as the source fund in an STP?

"Equity fund" "Debt fund" "Index fund" "Balanced fund"

What is one of the key benefits of investing in debt funds over a regular savings bank account?

"Guaranteed principal protection" "Higher potential returns" "Tax-free interest income" "Lower risk of inflation"

According to the article, what is a significant advantage of liquid or ultra short-term debt funds in the context of STPs?

"They offer guaranteed returns" "They have no exit load" "They are not subject to market fluctuations" "They provide tax benefits"

What is the primary mechanism by which STPs help mitigate market risk?

"Diversification across multiple asset classes" "Investing at predetermined intervals over time" "Hedging against market downturns" "Limiting exposure to volatile sectors"

What is a key consideration when selecting a fund house for executing an STP?

"The fund house's historical performance" "The availability of a wide range of schemes within the same fund house" "The expense ratios charged by the fund house" "The fund manager's reputation"