STP Calculator
Estimate returns from systematic transfer between source and target funds to optimize your wealth growth.
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STP Summary
STP cannot continue beyond a point because source fund balance becomes insufficient.
Total Initial Investment
₹ 5,00,000
Total Transferred
₹ 3,00,000
Source Fund Remaining
₹ 2,00,000
Target Fund Value
₹ 3,20,000
Total Final Value (Source + Target)
₹ 5,20,000
Estimated Gain
₹ 20,000
Transfer Schedule
| Month | Opening Source Bal | Transfer Amt | Source Closing Bal | Target Fund Value | Total Portfolio |
|---|
What is a Systematic Transfer Plan?
A Systematic Transfer Plan (STP) is a facility that allows you to invest a lump sum amount in one scheme (usually a safe debt or liquid fund) and transfer a fixed amount regularly into another scheme (usually an equity fund) of the same mutual fund house.
How it Works
- check_circle Park Funds: Invest your lump sum in a low-risk source fund.
- check_circle Transfer: A fixed sum is periodically transferred to a target equity fund.
- check_circle Dual Growth: Your lump sum earns steady returns in the debt fund while the transferred amount benefits from equity market growth.
Benefits of STP
Instead of investing a lump sum directly into equity (which carries timing risk), STP helps you average your purchase cost while ensuring your idle money earns more than a regular savings account.