Glossary term
STP
Moving a fixed amount from one mutual fund to another every month — typically debt → equity to stagger market entry.
A Systematic Transfer Plan (STP) automatically transfers a fixed amount from one mutual fund to another at regular intervals. The most common use: park a lumpsum in a liquid or debt fund and STP into an equity fund over 6–12 months, reducing timing risk.
STP is the middle ground between SIP (no lumpsum, monthly cash flow) and lumpsum (large amount, one shot). Use it when you have idle capital but markets feel stretched.
See also