{"id":7674,"date":"2025-07-11T11:03:04","date_gmt":"2025-07-11T11:03:04","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&p=7674"},"modified":"2025-07-11T11:03:08","modified_gmt":"2025-07-11T11:03:08","slug":"what-is-a-systematic-transfer-plan-stp","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/what-is-a-systematic-transfer-plan-stp\/","title":{"rendered":"What is a Systematic Transfer Plan (STP)?"},"content":{"rendered":"

A Systematic Transfer Plan (STP)<\/a> is a strategy in mutual fund<\/a> investing that allows you to move a fixed amount of money from one mutual fund scheme to another at regular intervals. Typically, investors transfer funds from a debt or liquid fund to an equity<\/a> fund. This approach helps in managing market volatility<\/a> and averaging the cost of investments over time. <\/p>\n\n\n\n

Types of STPs<\/h2>\n\n\n\n
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  1. Fixed STP<\/strong>: Transfers a predetermined amount from the source fund to the target fund at regular intervals.<\/li>\n\n\n\n
  2. Flexible STP<\/strong>: The transfer amount varies based on market conditions or the investor’s discretion.<\/li>\n\n\n\n
  3. Capital Appreciation STP<\/strong>: Only the gains (capital appreciation) from the source fund are transferred to the target fund.<\/li>\n<\/ol>\n\n\n\n

    Features of STP<\/h2>\n\n\n\n