What is Systematic Transfer Plan (STP) & how does it work?
Systematic Transfer Plan (STP) is a plan which will help you transfer your investments every month from one fund to another. So that the risk related to your investments could be managed well.
- Scenario 1: You could lower your risk related to the investments by moving money from equity funds to debt funds.
- Scenario 2: You could get higher returns by moving money from debt funds to equity funds.
Please note: Your invested amount should be equal or greater than Rs.2 lakh to place a STP.