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Sunday, June 8, 2014

What is the advantage of Mutual Fund STPs?

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What is the advantage of STP?

The investor can keep his money invested instead of leaving it idle. If he wants a transfer from debt to equity funds, the money is systematically channelized into the desired equity fund under an STP. In this manner, the investor continues to get returns from the debt fund, and can gradually increase his investments in the equity fund.

STP gives the investor the advantage of regular investing which SIPs offer and regular withdrawal offered by SWPs. Since the transfer happens from one scheme to another, the investor stays invested at all times.

 

 

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