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Nifty 5024,207.750.52%H 24,378.6 · L 24,207.75|Sensex77,472.940.24%H 77,986.84 · L 77,472.94|Bank Nifty57,783.750.47%H 57,996.05 · L 57,611.85|USD / INR₹95.40%H ₹95.4 · L ₹95.4|Gold Intl (10g)₹1,43,488.760.54%H ₹1,44,077.66 · L ₹1,42,565.54|Silver Intl (1kg)₹2,11,635.351.43%H ₹2,13,322.29 · L ₹2,08,844.21|Crude WTI₹7,783.690.78%H ₹7,838.06 · L ₹7,777.96|Bitcoin₹75,32,0030.48%H ₹75,49,962.1 · L ₹75,14,043.9|Ethereum₹2,38,8872.26%H ₹2,41,589.62 · L ₹2,36,184.38|Nifty 5024,207.750.52%H 24,378.6 · L 24,207.75|Sensex77,472.940.24%H 77,986.84 · L 77,472.94|Bank Nifty57,783.750.47%H 57,996.05 · L 57,611.85|USD / INR₹95.40%H ₹95.4 · L ₹95.4|Gold Intl (10g)₹1,43,488.760.54%H ₹1,44,077.66 · L ₹1,42,565.54|Silver Intl (1kg)₹2,11,635.351.43%H ₹2,13,322.29 · L ₹2,08,844.21|Crude WTI₹7,783.690.78%H ₹7,838.06 · L ₹7,777.96|Bitcoin₹75,32,0030.48%H ₹75,49,962.1 · L ₹75,14,043.9|Ethereum₹2,38,8872.26%H ₹2,41,589.62 · L ₹2,36,184.38|

Systematic Transfer Plan (STP)

Moving money gradually from one fund to another.

Definition

A Systematic Transfer Plan (STP) automatically transfers a fixed amount at regular intervals from one mutual fund (often a low-risk debt/liquid fund) into another (usually an equity fund). It is a disciplined way to deploy a lump sum into equities gradually.

Example

Park ₹6 lakh in a liquid fund and STP ₹50,000 a month into an equity fund over a year to average your entry price.

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