A Systematic Transfer Plan (STP) is a mutual fund facility that allows investors to transfer a fixed amount or a fixed number of units from one mutual fund scheme to another at regular intervals. STPs are commonly used to gradually move investments from debt mutual funds to equity mutual funds, or vice versa, depending on an investor's financial goals and market outlook. This approach helps reduce the impact of market volatility by spreading investments over time instead of making a lump-sum switch. Investors may also use an STP Calculator to estimate transfer amounts and understand how periodic transfers can affect their investment strategy over time.
