20/09/2026
A Systematic Transfer Plan (STP) lets you periodically transfer money from one mutual fund scheme to another within the same AMC.
For example, you could invest a lump sum in one scheme and gradually transfer a fixed amount into another scheme through STP.
How does STP work?
1. Fixed STP
You transfer a fixed amount at regular intervals.
2. Flexible STP
The transfer amount can vary based on the selected STP facility and its terms.
3. Capital STP
The gains generated from one scheme are transferred to another scheme.
One potential benefit is rupee-cost averaging, as investments are spread across different market levels rather than being transferred all at once.
However, STP does not eliminate market risk. Transfers may also have tax and exit-load implications, depending on the schemes and applicable rules.
Also remember: STP is generally available only between schemes of the same fund house/AMC.
Before choosing an STP, check the applicable transfer frequency, minimum amount, exit load and tax treatment.
Need help understanding STP? Contact us.
Contact: +91 9324 014040
Email: [email protected]
Website: https://www.amrik.in/
Amrik Capital is an AMFI-registered mutual fund distributor (ARN-138714)
[Mutual Funds, Systematic Transfer Plan, STP, Lumpsum]
