Mutual Funds - Systematic Transfer Plan

While investing in a debt fund normally assures you of fairly consistent returns, equities have the potential to create wealth. But the unpredictability in equity funds can be quite a deterrent when you make a choice. To combine the best of both worlds, we present Systematic Transfer plan.

It's Ideal for
Being disciplined - It’s the key to investing success. With the Systematic Investment Plan you commit an amount of your choInvestors who want to invest lump sum money in schemes with stable returns and ensure small exposure to equity schemes in order to avail of the potential for higher growth through equities.

Invest a lump sum amount in a debt-oriented scheme (Debt schemes can be either 100% debt or High Debt and Low equity). Specify a desired amount to be transferred to any equity schemes of the same AMC. This works like a SIP (Systematic Investment Plan) . Lowering Risk and increasing returns. This is best suited when markets have peaked or the investor is unsure of the further uptrend in the market

  • Optional Available
    • Weekly Systematic Transfer Plan:
    • Fortnightly Systematic Transfer Plan:
    • Monthly Systematic Transfer Plan:
    • Monthly Systematic Transfer Plan:
        * Minimum Balance in the Scheme at the time of enrollment for   STP facility should be Rs.6,000/-.
  • Minimum Transfer Amount
    • Monthly Systematic Transfer Plan:
      Investors are required to instruct for minimum 12 transfers of Rs. 500/- and above each or
      minimum 6 transfers of Rs. 1000/- and above each.

    • Quarterly Systematic Transfer Plan:
      Investors are required to instruct for minimum 4 transfers of Rs. 1500/- and above each.
  • Transfer Dates
    • Monthly Systematic Transfer Plan - Transfer can be of following dates:
      • 1st or 10th or 20th of each month.
      • Investors can also opt for multiple dates within a month and
              in this case, the transfer can be instructed for 1st and / or 10th / and / or 20th of each month.
    • Quarterly Systematic Transfer Plan - Transfer can be instructed for the following dates: 1st or 10th or 20th of the beginning month of each quarter
           (January, April, July, October)
  • Load Structure
  • Each amount transferred under STP, if less than or equal to Rs.10,00,000/- from the transferor scheme to the transferee scheme shall be effected by redeeming units of the transferor scheme at the applicable NAV, without payment of any exit load, if any; and subscriptions to the units of the transferee scheme at the applicable NAV, without payment of any entry load, if any, as on the specified date of a month/quarter. However, the applicable entry load originally waived will be levied in the Transferee Scheme if the units are redeemed/switched out within 365 days from the date of transfer in the transferee scheme. For switches within the equity funds during the 365-day period, no load will be charged.

 

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