What is STP? Understanding Systematic Transfer Plan | Investment Tips by Yadnya

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 (of same fund house). Every month on a specified date an amount you choose is transferred from one mutual fund scheme (mostly debt) to another of your choice (mostly Equity). In case of a volatile market, STP helps the investors to periodically transfer funds from Debt Schemes to Equity Schemes and help them save the effort and time by compressing multiple instructions required for redemption from one scheme to invest in the other into a single instruction. For Details on type of STP and how it works, please watch the video. Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/yadnyaacademy/?fref=ts Facebook Group - https://goo.gl/y57Qcr Twitter - https://mobile.twitter.com/investyadnya

Comments

1. Really Very Nice Vedios !! Informative for a new earner like me. Thanks & all the best to Team Yadnya :)
2. Dear Team Yadnya,
   Thanks for the video. I've gone through many videos on the topic of personal finance and find your videos most informative at the same time very easy to understand. keep up the good work. Thanks.
3. I have gone thru the presentation well explained.what happens after 36month/3years.does your money lie in Equity or Debt. and should be kept that way for how long.knowingthat you don't need that money for 4 - 5 more yrs.  Kindly explain
4. Sir , your videos are awesome.
   Can you please make a Vdo on Smart investor (Who were doing direct) , with any live example. Like when the Market is down how to invest in the same Fund even more to heal it and how to Switch from one Fund to another at that time when market is down.
   Pls madam , make a Video on this.
   
   Thank you
   Mannoj Roy
5. thanks for the video!
   I have a doubt...u said a person should STP from debt to equity in rising market..but in this case every time lesser units of equity will be bought.
   I think we start STP in the falling market (as we'll get more units to buy Everytime) and then wait till the market comes up high, should book the profit!!
   isn't it?
6. in case of shifting from balanced funds to equity funds through STP capital appreciation..is any taxation involved
7. I'm not clear with the tax part on STP..So please help me on this issu
8. It is better to put the lumpsum money in balanced funds than debt funds, for further transfer into equity funds. From debt to equity we may have to wait for three years and then opt for STP to avoid a lesser taxation