STP is a useful tool for portfolio rebalancing and capital transfers from debt to equity, and vice-versa.
It allows you to transfer funds at your convenience, switch between debt and equity-based funds based on market volatility.
Fixed STP option will help you to transfer a fixed amount from one scheme to another on a regular basis.
It allows you to stay invested in a fund and reinvest the profits in a different scheme.
It enables investors to establish a target market value for their investment in the target scheme on each transfer date.
STP is a helpful strategy to avoid market volatility.
STPs maximise the benefits of rising or falling interest rates and help mitigate risk.
Opt for STP only if you have a sizable amount of money to invest that you won't need anytime soon.
Compiled By Himani Verma