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SIP or STP: Millions of investors use SIPs to invest in mutual funds regularly, but few are familiar with STP. In contrast, STP allows investors to invest a lump sum in a mutual fund, usually a debt fund, and gradually transfer it to equity funds at regular intervals. Key differences between SIP and STP Under SIP, money is deposited directly …

Equity

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 …

Hi, please explain what is the concept of STP? If you have to invest a small amount every month in the equity market through mutual fund schemes, you may opt for SIP which is very popular among retail investors. However, if you have a lumpsum amount to invest in the equity market, say ₹5 lakh, ₹10 lakh, or even higher, …