What is the primary function of a Systematic Transfer Plan (STP)?
"To facilitate the transfer of funds between schemes managed by different asset management companies."
"To enable investors to periodically move funds between schemes within the same asset management company."
"To provide a guaranteed return on investment regardless of market fluctuations."
"To automatically invest a fixed amount in a single mutual fund scheme at regular intervals."
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Which of the following types of STP allows investors to determine the amount of funds to be transferred based on market conditions?
"Fixed STP"
"Capital STP"
"Flexible STP"
"Systematic Withdrawal Plan (SWP)"
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What is the key benefit of a Capital STP?
"It transfers the total invested amount to a different scheme."
"It transfers only the capital gains from one scheme to another."
"It guarantees a fixed return on the transferred amount."
"It allows investors to avoid any exit load charges."
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What is the minimum investment amount mandated by SEBI for STP?
"Rs. 12,000"
"There is no minimum investment amount mandated by SEBI"
"Rs. 5,000"
"Rs. 10,000"
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Which of the following is NOT a benefit of investing in a Systematic Transfer Plan?
"Rupee Cost Averaging"
"Higher potential returns"
"Guaranteed principal protection"
"Portfolio stability during market volatility"
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What is the tax implication on gains from STP investments redeemed before 3 years?
"Tax-free"
"Deductible at 15% under short term gains"
"Deductible at 10% under short term gains"
"Deductible at 20% under long term gains"
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Who would benefit the most from investing in a Systematic Transfer Plan?
"Investors seeking short-term gains with high risk appetite"
"Investors with limited resources aiming for long-term growth in the stock market"
"Investors looking for a guaranteed fixed income from debt instruments"
"Investors who prefer to invest a lump sum amount in a single mutual fund scheme"
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