What is Systematic Transfer Plan (STP)?
What is Systematic Transfer Plan (STP)? A. Under an STP, a fixed amount of your capital is automatically transferred at regular pre-determined intervals (monthly or quarterly) from one mutual fund scheme to another scheme of the same fund house. For example - if you have received a lump sum amount and if you wish to invest the same in an equity-oriented fund through an SIP, you can first invest the entire amount in a liquid fund. You can then issue an instruction to the mutual fund to transfer a pre-determined sum of money at pre-determined intervals from the liquid fund to the equity fund. Alternatively, if you have invested in an equity scheme and would like to book gains at regular intervals, you could instruct the mutual fund to transfer only the capital appreciation on a regular basis to a liquid fund. To know more, click here, our Relationship Manager will get in touch with you shortly.