Wondering what an STP is in mutual funds? Let’s break it down!
What is STP?
It’s a strategy where you gradually transfer your investment from one mutual fund to another — typically from a liquid or debt fund to an equity or hybrid fund.
Why STP?
1. Reduces market volatility risk
2. Gives you flexibility in transfer amount & frequency
3.Helps balance your investment against daily market fluctuations
4.Enables rupee cost averaging — a smart way to invest
Instead of putting all your money in equity at once, park your funds in a liquid fund and choose STP.
Example:
Invest ₹1,00,000 in a Liquid Fund
Transfer ₹5,000 weekly to a Flexi Cap Fund over 20 weeks
This helps you buy more units when markets dip and fewer when they rise — minimizing risk, maximizing returns!
STP = Smart, Strategic, and Stress-Free Investing!
Ready to invest wisely?