Click below to download Mutual Fund STP Request Transaction Form
What is Systematic Transfer Plan (STP)?
In STP where in an investor invests a lump sum amount in one scheme and regularly transfers (i.e. switches) a pre-defined amount into another scheme. Every month / Week / Quarterly on a specified date an amount you choose is transferred from one mutual fund scheme to another of your choice. You can invest in a Debt funds and from there you can start a STP to an Equity Fund, so it works like a systematic Investment Plan (SIP).
In case of a volatile market, STP helps the investors to periodically transfer funds from one scheme (source scheme) to another (target scheme) and help them save the effort and time by compressing multiple instructions required for redemption from one scheme to invest in the other into a single instruction. STP is a possibly the second best investment strategy after SIP. It is one of the best risk mitigation strategies of the market.
1] Its work like SIP
2] Its also works like Systematic Withdrawal Plan (SWP)
3] Liquid Asset (STP from Debt -> Equity funds)
4] Averaging of cost
5] Re balancing portfolio
- STP is a transfer from one fund to another fund in a systematic manner. The amount of money transferred is fixed except under flexi STP.
- By and large a minimum of 6 such transfers are required to invest in STP
- There is a minimum amount to be invested in a systematic transfer plan which depends upon different fund houses
- Usually money is transferred from debt fund to equity fund. There are very few companies in India which gives an option of transferring money from equity to debt fund
- Transfer can be weekly, fortnightly, monthly and Quarterly
The process is very simple to STP in Mutual Fund Schemes. Steps to follow while filling STP Transaction Application Form:
1. Download Mutual Fund STP Form and print it on A4 Page.
2. Fill up following details:
A] Applicants Name, B] Mutual Fund Company Name, C] Folio No D] Investor Name, E] From Scheme /Plan /Option, F] To Scheme / Plan / Option, G] Amount / Units to STP, I] Pan No, J] Signature.
3. Now submit this STP Form to Distributor / Broker or Mutual Fund House or Registrar of Mutual Fund.
4. To track the status of your STP Application form, keep copy of STP Form and the Acknowledgement Slip.
5. After submitting your request it takes approximately 1-2 working days to STP in/out your Mutual Fund Scheme.
6. Also you can send the STP Form/Slip to below mentioned address to do the needful:
Sanriya Investment Advisors Pvt. Ltd. 968/1, Senapati Bapat Road, Opposite Ratna Memorial Hospital, Between ATM of PNB and Vidya Sahakari Bank, Pune 411016, Contact: 9822403407 / 9371011297.
Common Mutual Fund Application Forms for Lum Sum /One time Investment. Systematic Investment Plan (SIP) Mutual Fund Application Form