What is a Systematic Transfer Plan and how it is different from an SIP?

Mutual funds have become a very common way of generating wealth. So the investor invests the entire corpus in a debt fund which is considered safer than equity funds and usually gives a decent rate of return. So instead of money getting deducted from his bank account like in a SIP, the fund is transferred from his debt fund to his desired equity funds at regular intervals. So the equity funds get a specific amount deposited at regular intervals like in the case of a SIP but only from a debt fund account instead of a bank account. STP vs SIP While both STP and SIP involve regular investments in equity mutual funds, in SIP the money comes from your bank account while in the case of STP, it gets transferred from your debt fund.