STP (Systematic Transfer Plan)
Systematic Transfer Plan (STP) is a mechanism where a fixed amount is periodically
transferred from one mutual fund to another, typically from a low-risk debt fund
to a growth-oriented equity fund. This strategy allows investors to gradually enter
equity markets, reducing the risk of timing the market incorrectly.
At Metaarth Finserve, we design STPs to suit different investment objectives, risk
appetites, and market conditions. STPs are particularly effective for investors
with lump sum amounts who wish to transition into higher-risk funds gradually while
maintaining controlled exposure. This strategy balances potential returns with risk
management, offering a systematic and disciplined approach to wealth growth.
Key Highlights
- Phased investment to manage market risk
- Smooth transition from low-risk to growth assets
- Regular, automated transfers for disciplined investing
- Reduces impact of market volatility
- Flexible in terms of transfer amounts and frequency