What is SIP in mutual funds?

SIP (Systematic Investment Plan) is an instruction to invest a fixed amount regularly (monthly/quarterly) at the prevailing NAV. It automates investing and averages purchase cost through rupee cost averaging.

What is the difference between SIP, SWP, and STP?

SIP invests a fixed amount regularly into a fund. SWP withdraws a fixed amount regularly from a fund. STP transfers a fixed amount regularly from one fund to another within the same AMC.

What is the redemption timeline for equity mutual funds?

T+2 business days — the AMC must credit redemption proceeds to the investor's bank account within 2 business days of a valid redemption request. Liquid funds are T+1.

How many nominees can be added to a mutual fund folio?

Up to 3 nominees per folio. Since 2022, nomination is mandatory for individual investors — they must either register a nominee or submit a declaration opting out of nomination.

How does SEBI SCORES help mutual fund investors?

SEBI SCORES is the centralised online grievance portal. Investors must first complain to the AMC (who must respond within 30 days). Unresolved complaints can be escalated to SEBI SCORES for regulatory intervention.

NISM V-A Chapter 9 Investor Services: Score 15 Marks in 2026

NISM V-A Chapter 9 carries 15 marks. Covers SIP, SWP, STP, redemption timelines, nominations, transmission, & SEBI SCORES grievance portal.

Why Chapter 9 Is Worth 15 Marks — and How to Score All of Them

Chapter 9 is tied for the highest weightage in NISM V-A at 15 marks (shared with Chapter 12). It covers the practical mechanics of investor transactions — SIP, SWP, STP, redemption timelines, account statements, nominations, and grievance redressal. These are operational facts, not concepts. Memorise the exact timelines and you score reliably.

What Is SIP and How Does It Work in a Mutual Fund?

SIP (Systematic Investment Plan)An instruction to the AMC to debit a fixed amount from your bank account on a specified date each month (or quarter/week) and invest it in a chosen scheme at the prevailing NAV. SIPs automate investing and average purchase cost through rupee cost averaging.

SIP transactions are processed at the NAV of the SIP date (subject to cut-off time rules). If the SIP date falls on a non-business day, it is processed on the next business day. SIPs can be paused, reduced, or stopped — but minimum SIP tenure and amount vary by scheme.

What Is SWP and When Is It Useful?

SWP (Systematic Withdrawal Plan)The opposite of SIP — the investor instructs the AMC to redeem a fixed amount or fixed number of units monthly. Used for generating regular income from a lump-sum corpus. Each withdrawal is a redemption and may be subject to capital gains tax and exit load.

SWP is useful for retirees who want regular income without depleting their corpus too quickly. The remaining corpus continues to grow at the fund's returns. Each SWP redemption is taxed as LTCG or STCG depending on holding period of the redeemed units.

What Is STP and How Does It Differ from SIP?

STP (Systematic Transfer Plan)A regular transfer of a fixed amount from one scheme to another within the same AMC. Typically from a liquid/debt fund to an equity fund, to deploy a large lump sum gradually. The transfer from the source scheme is treated as a redemption (taxable) and the receipt in the target scheme as a fresh purchase.

What Are the Redemption Timelines for Different Fund Types?

Redemption timelines — the number of business days within which the AMC must credit proceeds to the investor's bank — are directly tested. The exam gives you a fund type and asks the maximum allowed timeline.

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T+2 / T+1Redemption timelines: T+2 for equity/hybrid funds; T+1 for liquid and overnight funds (where T = date of valid redemption request)

What Are the Rules for Nomination in Mutual Funds?

Nomination is mandatory for all individual investors since 2022 (or submission of an opt-out declaration). Up to 3 nominees can be registered per folio. Nominees receive units upon the death of the unit holder — they are not legal heirs but can transmit units to legal heirs. Nomination can be changed or cancelled by the unit holder at any time.

How Can Investors Raise Grievances?

SEBI SCORES (Securities and Exchange Board of India Complaints Redress System) is the centralised online portal for investor grievances. Investors must first approach the AMC — if unresolved within 30 days, they can escalate to SEBI SCORES. AMCs must respond to complaints within 30 calendar days.

Chapter 9 Practice Questions

Q1. What is the maximum redemption payout timeline for a liquid fund?

Answer: T+1 business day. Liquid fund redemptions must be paid within 1 business day. Equity/hybrid fund redemptions must be paid within T+2 business days.

Q2. How many nominees can a mutual fund investor register per folio?

Answer: Up to 3 nominees per folio. Nomination became mandatory in 2022 — investors must either add nominees or submit a declaration opting out.

Q3. An investor transfers ₹5 lakh from a debt fund to an equity fund via STP. Is this taxable?

Answer: Yes. The transfer from the debt fund is treated as a redemption and is subject to capital gains tax. The investment in the equity fund creates a new purchase record.

All 15 investor services marks are highly learnable — practice the full question bank →

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Continue to Chapter 10: Risk & Return or back to the full NISM V-A guide.