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Nifty 5024,258.450.21%H 24,297.45 · L 24,238.35|Sensex77,472.940.24%H 77,986.84 · L 77,472.94|Bank Nifty57,866.10.14%H 58,012.4 · L 57,759.95|USD / INR₹95.410%H ₹95.47 · L ₹95.4|Gold Intl (10g)₹1,43,769.280.73%H ₹1,44,085.21 · L ₹1,42,573.02|Silver Intl (1kg)₹2,12,244.571.72%H ₹2,13,333.48 · L ₹2,08,855.16|Crude WTI₹7,807.950.47%H ₹7,839.43 · L ₹7,774.55|Bitcoin₹75,25,5740.12%H ₹75,30,179.12 · L ₹75,20,968.88|Ethereum₹2,37,6881.41%H ₹2,39,366.09 · L ₹2,36,009.91|Nifty 5024,258.450.21%H 24,297.45 · L 24,238.35|Sensex77,472.940.24%H 77,986.84 · L 77,472.94|Bank Nifty57,866.10.14%H 58,012.4 · L 57,759.95|USD / INR₹95.410%H ₹95.47 · L ₹95.4|Gold Intl (10g)₹1,43,769.280.73%H ₹1,44,085.21 · L ₹1,42,573.02|Silver Intl (1kg)₹2,12,244.571.72%H ₹2,13,333.48 · L ₹2,08,855.16|Crude WTI₹7,807.950.47%H ₹7,839.43 · L ₹7,774.55|Bitcoin₹75,25,5740.12%H ₹75,30,179.12 · L ₹75,20,968.88|Ethereum₹2,37,6881.41%H ₹2,39,366.09 · L ₹2,36,009.91|

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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