STP Calculator
Plan systematic transfers between mutual funds and optimize your portfolio with the Systematic Transfer Plan calculator.
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Insights & Questions
Everything you need to know about STP calculations.
STP allows an investor to transfer a fixed amount of money from one mutual fund scheme (usually a Liquid or Debt fund) to another (usually an Equity fund) of the same fund house regularly.
If you have a large sum of money, instead of investing everything in equity at once (which is risky), you can park it in a safe debt fund and transfer small amounts daily or monthly to equity. This averages the cost of purchase and reduces timing risks.
The two most common are Fixed STP (transferring a fixed amount) and Capital Appreciation STP (transferring only the returns earned from the source fund to the target fund).
While there is no entry load, some source funds might have an exit load if you transfer too early (like within 7 days in liquid funds). Most STPs within the same fund house do not have significant exit costs.
Every transfer from the source fund to the target fund is considered a redemption. You will be liable for capital gains tax on the gains made in the source fund at the time of each transfer.
No, a Systematic Transfer Plan (STP) only works between different schemes of the same mutual fund house (AMC). To move money across AMCs, you would need to manually redeem and reinvest.