STP refers to Systematic Transfer Plan where in an investor invests a lump sum amount in one scheme and regularly transfers (i.e. switches) a pre-defined amount into another scheme. This transfer frequency could be weekly, Fortnightly, monthly or quarterly as offered by Mutual fund.
Investors who want to invest lump sum money in schemes with stable returns and ensure small exposure to equity schemes in order to avail of the potential for higher growth through equities.
Invest a lump sum amount in a debt-oriented scheme. Specify a desired amount to be transferred to any of our equity schemes of that Mutual fund. The amount will be transferred to the selected scheme on the 1st of every month.
Ideal For:
Low risk Profile Investors
Investor who wishes to invest large sum
How this scheme is beneficial
Capital Protection: Suppose you have big sum to be invested, then you can invest all the amount in debt fund and transfer small portion in desired frequency(Weekly, monthly etc.) Here your capital is fully protected and you also get some benefit of equity returns in your overall portfolio. Since equities has always over-performed other forms of investment in long run, you dont miss out on that front.
Rupee cost averaging: STP ensure that your capital is not exposed to any risk whereas the interest/appreciation earned from that is transferred to equities in systematic way ensuring you get full benefit of Rupee cost averaging. Rupee cost averaging is a very effective risk management tool which secures risk free higher return in equities in long run.
Investment via Scientific approach : Capital protection and Rupee cost averaging will always give you higher risk free returns in long run than traditional method of investments.
Investors who want to invest lump sum money in schemes with stable returns and ensure small exposure to equity schemes in order to avail of the potential for higher growth through equities.
Invest a lump sum amount in a debt-oriented scheme. Specify a desired amount to be transferred to any of our equity schemes of that Mutual fund. The amount will be transferred to the selected scheme on the 1st of every month.
Ideal For:
Low risk Profile Investors
Investor who wishes to invest large sum
How this scheme is beneficial
Capital Protection: Suppose you have big sum to be invested, then you can invest all the amount in debt fund and transfer small portion in desired frequency(Weekly, monthly etc.) Here your capital is fully protected and you also get some benefit of equity returns in your overall portfolio. Since equities has always over-performed other forms of investment in long run, you dont miss out on that front.
Rupee cost averaging: STP ensure that your capital is not exposed to any risk whereas the interest/appreciation earned from that is transferred to equities in systematic way ensuring you get full benefit of Rupee cost averaging. Rupee cost averaging is a very effective risk management tool which secures risk free higher return in equities in long run.
Investment via Scientific approach : Capital protection and Rupee cost averaging will always give you higher risk free returns in long run than traditional method of investments.
