A Systematic Transfer Plan or STP helps you to regularly move your holdings from one scheme to another within the same Fund House and Folio. For example, you can invest a large amount in a Liquid Fund of one scheme and move to the Equity Fund of the same fund house every week, month or quarter.
On the date of a scheduled STP transaction, a sell order in the Source Scheme and a Purchase Order in the Target Scheme is placed automatically. The Fund Houses re-allocates the funds received from Sale of Source Scheme towards Purchase of Target Scheme within its records. This removes need for movement of funds to and from your bank completely.
Setup an STP online here.
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