An STP can help you move money into equity gradually, but it’s not a magic formula. It’s a method, not a guarantee.
One helps you invest steadily, the other helps you move money smartly. Together, SIPs and STPs solve two of the biggest problems in investing: timing the market and managing risk.
A Systematic Transfer Plan (STP) is a smart way to invest a lump sum amount gradually, reducing market timing risks and optimizing returns. Monitor performance and consider tax implications for maximum benefits.
Though the Nifty50 index is at an all-time high, investors need to stick to their asset allocation and invest in multi-cap and flexicap funds through SIP and STP, advise experts. But if you need money in the next 2-3 years, take some money off the table.
ICICI Prudential Mutual Fund announces changes in of Specified Transaction Period (STP) under its three schemes