8 Things You Need To Know About STPs

What Is A Systematic Transfer Plan?

STP is a useful tool for portfolio rebalancing and capital transfers from debt to equity, and vice-versa.

Flexibility

It allows you to transfer funds at your convenience, switch between debt and equity-based funds based on market volatility.

Fixed STP

Fixed STP option will help you to transfer a fixed amount from one scheme to another on a regular basis.

Capital Appreciation STP

It allows you to stay invested in a fund and reinvest the profits in a different scheme.

Swing STP

It enables investors to establish a target market value for their investment in the target scheme on each transfer date.

Market Volatility

STP is a helpful strategy to avoid market volatility.

Risk Management

STPs maximise the benefits of rising or falling interest rates and help mitigate risk.

Usage

Opt for STP only if you have a sizable amount of money to invest that you won't need anytime soon.

Compiled By Himani Verma

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