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Nifty 5023,985.350.04%H 24,041.15 · L 23,954.6|Sensex76,765.920.09%H 76,988.48 · L 76,672.77|Bank Nifty56,755.60.58%H 57,054.2 · L 56,672.4|USD / INR₹95.840.06%H ₹95.91 · L ₹95.62|Gold Intl (10g)₹1,23,945.811.34%H ₹1,25,896.33 · L ₹1,23,764.01|Silver Intl (1kg)₹1,76,024.382.7%H ₹1,81,262.74 · L ₹1,75,331.07|Crude WTI₹7,789.081.62%H ₹7,900.26 · L ₹7,648.19|Bitcoin₹60,39,4743.06%H ₹61,31,855.06 · L ₹59,47,092.94|Ethereum₹1,79,4013.67%H ₹1,82,691.38 · L ₹1,76,110.62|Nifty 5023,985.350.04%H 24,041.15 · L 23,954.6|Sensex76,765.920.09%H 76,988.48 · L 76,672.77|Bank Nifty56,755.60.58%H 57,054.2 · L 56,672.4|USD / INR₹95.840.06%H ₹95.91 · L ₹95.62|Gold Intl (10g)₹1,23,945.811.34%H ₹1,25,896.33 · L ₹1,23,764.01|Silver Intl (1kg)₹1,76,024.382.7%H ₹1,81,262.74 · L ₹1,75,331.07|Crude WTI₹7,789.081.62%H ₹7,900.26 · L ₹7,648.19|Bitcoin₹60,39,4743.06%H ₹61,31,855.06 · L ₹59,47,092.94|Ethereum₹1,79,4013.67%H ₹1,82,691.38 · L ₹1,76,110.62|

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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