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    Question

    Refer to the following information to answer the next 4 questions (Q27 to Q30) Mutual funds are investment vehicles that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities. This allows individual investors access to a broader range of assets than they might be able to manage on their own. Investors seeking to optimize their financial strategies often consider different types of investment plans that suit various financial goals and life stages. In mutual funds SWP, SIP, and STP are three such strategies that enable investors to manage their finances with flexibility and precision. Each of these plans serves a unique purpose, ensuring that investors can tailor their investment approaches to fit their specific financial needs and future aspirations.

    The acronym 'STP' stands for which of the following in

    the context of mutual fund investments?
    A Systematic Term Plan Correct Answer Incorrect Answer
    B Systematic Trading Plan Correct Answer Incorrect Answer
    C Systematic Transaction Policy Correct Answer Incorrect Answer
    D Systematic Transfer Plan Correct Answer Incorrect Answer
    E Systematic Timing Plan Correct Answer Incorrect Answer

    Solution

    STP, or Systematic Transfer Plan, involves the transfer of investments between different funds, typically from debt to equity, which helps in balancing risk and return dynamically.

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