Calculate Mutual Fund Return with STP/Regular Payout of Schemes
A Systematic Transfer Plan (STP) helps you invest periodically from one fund to another. For example, let’s say you have received a lump sum amount that you want to invest in the stock markets. Instead of investing the entire amount on a single day, you could park the amount in a liquid fund and transfer a fixed amount periodically into an equity fund. This helps you average the cost of your equity investments as you would invest in equity across different market levels while the balance in the liquid fund continues to earn you returns.
Four Important Principles are:-
- Avoid timing the market
- Minimise risk
- Portfolio rebalancing
- Balance your portfolio with equity and debt
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Frequently Asked Questions
STP means Systematic Transfer Plan. It helps you avoid timing the market. Systematic Transfer Plan is usually done from a debt scheme to an equity scheme. This is really helpful if you are a first-time investor or an existing one and want to slowly participate in the equity markets. For example, let’s say you have received a lump sum amount that you want to invest in the stock markets. Instead of investing the entire amount on a single day, you could park the amount in a liquid fund and transfer a fixed amount periodically into an equity fund.
Choose your investment mode, the source scheme and the target scheme, amount, duration of transfer and frequency. The results will then show you your overall returns through STP.
Here are some benefits of using STP calculator:
- You avoid timing the market.
- You minimise risk by not investing everything together.
- Its helps in rebalancing your portfolio between debt and equity.
Disclaimer
This calculator is meant to be used for indicative purposes only. It is designed to assist you in determining the appropriate amount of prospective investments. This calculator alone is not sufficient and shouldn’t be used for the development or implementation of any investment strategy. Edelweiss Asset Management Limited does not take the responsibility / liability nor does it undertake the authenticity of the figures calculated therein. Edelweiss Asset Management Limited makes no warranty about the accuracy of the calculators/reckoners. The examples do not claim to represent the performance of any security or investments. In view of individual nature of tax consequences, each investor is advised to consult his/ her own professional tax advisor before making any investment decisions on the basis of the results provided through the use of this calculator.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
