n NISM Certifications
V-A NISM Series V-A
Medium

Which is the Source Scheme in a Systematic Transfer Plan (STP)?

Practice question from NISM Series V A - Short Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It is the scheme with the lower NAV

  2. It is the scheme from which funds are transferred

    Correct answer

  3. C

    It is the scheme to which funds are transferred

  4. D

    It is the scheme with the higher NAV

Why this is the answer

The source scheme is where the funds are debited from in an STP. The amount is transferred periodically to the target scheme.

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