SYSTEMATIC TRANSFER PLAN

Move Funds Systematically from Debt to Equity

STP helps you shift a large lump sum safely into equity by moving a fixed amount from a debt fund to an equity fund at regular intervals — reducing timing risk while maximising long-term returns.

Reduces

Market timing risk

Auto

Transfers between funds

Flexible

Weekly/monthly frequency

Set Up STP Talk to Advisor

STP Strategy Overview

Source FundLiquid / Debt Fund

Target FundEquity Fund

Transfer FrequencyMonthly

Duration6–24 months

BenefitAvg cost reduction

KEY BENEFITS

Why STP Outperforms Lump-Sum Equity Investment

Reduces Timing Risk

Instead of investing a lump sum when markets might be at a peak, STP spreads the entry over months — buying more equity units when prices are low and fewer when prices are high.

Money Earns While Waiting

Your un-transferred amount sits in a liquid or short-term debt fund earning 5–7% returns while waiting to move to equity — far better than keeping it idle in a savings account.

Fully Automated Transfer

Once set up, transfers happen automatically at the chosen frequency — weekly, fortnightly, or monthly — without any manual intervention from you.

Flexible Transfer Amounts

You choose the transfer amount and the number of transfers. STP can run for 6 months or 2 years — whatever your market outlook and comfort level suggests.

Rupee Cost Averaging in Equity

Just like a SIP, STP buys equity fund units over time — averaging the purchase price and delivering better long-term returns than a single lump-sum entry.

Same Fund House, One Platform

STP must happen within the same fund house (e.g., HDFC Liquid to HDFC Equity). We help you choose the right fund house with strong options in both debt and equity categories.

WHO SHOULD USE STP

Is STP Right for You?

STP is particularly useful when you have a large amount to invest in equity but are uncertain about market timing.

✓Investors receiving a large lump sum (bonus, inheritance, property sale proceeds)
✓Those nervous about investing in equity when markets look expensive
✓Investors wanting to gradually shift from debt to equity as they accumulate wealth
✓Retirees moving a retirement corpus gradually into a balanced fund
✓NRIs remitting funds to India and phasing entry into equity markets
✓Anyone who prefers systematic, disciplined investing over market timing

Requirements

✓Lump sum invested in source fund (liquid/debt) first
✓Source and target funds from the same AMC
✓Completed KYC with the fund house
✓Minimum STP amount as per AMC (typically ₹500–₹1,000 per transfer)
✓PAN card and active bank account

THE PROCESS

How STP Works

Invest in Source Fund

Invest your lump sum in a liquid or short-term debt fund of your chosen AMC. Your money is safe, liquid, and earning 5–7% while the STP is set up.

Select Target Equity Fund

Choose the equity fund (same AMC) where the transfers will go. Our advisor recommends a diversified equity fund suited to your risk profile and investment horizon.

Submit the STP registration form specifying the transfer amount, frequency, and number of transfers. Processing typically takes 2–3 business days after submission.

Track & Complete

Transfers happen automatically on schedule. Track the value of both funds from one dashboard. Once the source fund is exhausted, the STP ends automatically.

Frequently Asked Questions

Is STP the same as SIP?

They work similarly — both invest fixed amounts at regular intervals using rupee cost averaging. The difference is the source: SIP debits your bank account while STP transfers from one fund to another within the same fund house. STP is ideal when you have a lump sum ready to deploy.

Is the transfer amount taxable?

Yes. Each transfer from the source fund constitutes a partial redemption and may attract capital gains tax. For liquid/debt funds, gains are taxed per your income tax slab. For equity funds as the source, LTCG or STCG rules apply. Tax impact is typically small if the source is a liquid fund with minimal appreciation.

Can I stop my STP midway?

Yes. You can cancel an STP at any time by submitting a cancellation request to the fund house. Your remaining balance in the source fund stays invested until you choose to redeem or restart transfers. No penalty applies for early cancellation.

How long should my STP run?

The ideal STP duration depends on market conditions. During market uncertainty, a 12–18 month STP smooths out volatility well. In a clearly bullish market, a shorter 6-month STP may be more appropriate. Our advisors assess market conditions and recommend the optimal tenure for your situation.

Can I do STP across different fund houses?

No. STP must happen between funds within the same AMC (fund house). You cannot transfer from an HDFC fund to a Mirae fund, for example. If you prefer a specific equity fund from a different AMC, a regular SIP from your bank account would be more appropriate.