Meaning
STP is a disciplined strategy to shift investments between mutual fund schemes.Definition
STP, or Systematic Transfer Plan (full form), allows investors to periodically transfer a fixed amount from one mutual fund (source) to another (target) within the same fund house.How It Works
A fixed amount automatically moves from a source scheme (e.g., debt) to a target scheme (e.g., equity) at regular intervals. This helps in rupee cost averaging.Benefits
Benefits include disciplined investing, rupee cost averaging, and managing market volatility. It helps diversify investments.Author
