If an investor wants to invest Rs 10 Lakh in an equity fund through STP, he will have to first select a debt/liquid fund which allows STP to invest in that particular equity fund.
Systematic transfer plan will be terminated, subject to five consecutive unsuccessful transactions or upon death of the unit-holder
Investors have pumped in nearly Rs 54,000 crore into various mutual fund schemes in January, with liquid, income and equity funds attracting the most of the inflows.
Be it building an emergency fund or parking money for a very short period of time, liquid funds are a wonderful investment option.
STP is a useful tool to invest lumpsum money into equity fund over a period of time.
Most investors want to know the right time to invest in an equity mutual fund. However the focus should be on investing money regularly and not on timing them.
Large cap stocks are available at cheaper valuations and will emerge as preferred buy when FIIs come back to India.
It not only allows you to invest at regular intervals but also enhances returns as the cash is invested in liquid funds, which generally offers better returns than savings bank account.
If a retired individual is willing to take risk, he can consider investing in equity. However the exposure to equity should be low and taken through systematic transfer plan offered by mutual funds.
Chitra Iyer, COO & Financial Coach at MFA explains about systematic transfer plan.
In an interview to CNBC-TV18, personal finance expert, Hemant Rustagi, Wiseinvest Advisors spoke about systematic transfer plan (STP).
Investing in mutual funds is one sure way of defeating the inflation and building retirement kitty. There are various Mutual Funds tools like SIP, STP or SWP which can be made use of towards building wealth. Read this space to understand how one can use these options towards easy retirement.
You are planning to invest in different mutual fund schemes over a period of time but want to avoid paper work involved from time to time. Don‘t worry about the hassle and the potential paper work that you may have to undergo. You have a one stop solution in form of Systematic transfer plan (STP).
Investors can use Systematic Transfer Plan (STP) as a defence mechanism in volatile market. This plan is used to transfer investment from one asset or asset type into another asset or asset type. Read this space to know all about STP and how does it work?
Entering equities in a piecemeal method is an effective way to reap benefits out of the current market volatility, advises Harshvardhan Roongta of Roongta Securities. By way of Systematic Transfer Plan (STP), you can authorize your fund to transfer a certain amount of money from one scheme to another in a systematic way at regular intervals.
There is always a risk involved while investing a big lumpsum amount in equities. In such a situation, investor seeking to invest in equities can take advantage of Systematic Transfer Plan (STP). STP enables investors to take exposure in equities while at the same time reaping benefits of the debt funds.
BNP Paribas Mutual fund announces changes in the features of Systematic Transfer Plan (STP) facility for all the schemes of the AMC. The revised features as stated below will be applicable with effect from January 02, 2012.