Edelweiss STeP Facility
A Smart Trigger enabled Plan (STeP) which helps you to start or stop investments in Edelweiss Mutual fund in a systematic manner and manage the market timing risk.
Eligible MF SchemesEdelweiss STeP Facility
What is STeP?
STeP stands for Smart Trigger enabled Plan . In a basic Systematic Transfer Plan (STP), you can transfer money from one scheme to another at periodic intervals that could be fortnightly, monthly, or even quarterly. This means that you don’t need to worry about the best time to enter or exit the market. A STeP facilh2ity takes this convenience one step further.
With this facility, you can also set triggers which help you decide the best time to switch your investments from one scheme to another.
How does Edelweiss STeP work?
STeP-In: This helps in the systematic transfer of investments from the source scheme to the target scheme.
- You can plan your investments in a staggered manner over a period of 6 to 12 months
- You can schedule the transfer with every 2% or 3% fall in the target scheme’s NAV.
STeP-Out: This helps you keep your equity gains safe by systematically transferring them to a relatively safer debt scheme.
- You can set a trigger for transfer. For example, you can specify that every time the equity scheme’s NAV increases by 3%, the gains made will be transferred to a debt scheme of your choice.
Why is Edelweiss STeP good for you?
- You are in control of your investments but you don’t need to worry about timing the market
- You don’t need to keep looking for market bottoms to buy equities
- You don’t need to keep looking for market tops to sell equities
- You can simply take away the gains made on your equity investments and keep them in safe debt investments
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De-jargonising SIP, STP & SWP
When you start your investment journey with mutual funds you are already aware of the many benefits that mutual funds offer ranging from diversification and liquidity to access to expert fund managers. As a result, you only end up paying attention to the choice of investment and do not focus on the way you invest.
SIP vs LUMPSUM
Buying a house is a major life goal for most people. It has been a long-time dream of 28-year-old Susheel Kumar who is from a middle-class household. He wishes to buy his own house in the next eight years and has decided to invest in mutual funds to build a sizeable corpus for the down payment. However, he is confused whether it would be better for him to invest via the Systematic Investment Plan (SIP) route or the lumpsum route. Many of us have found ourselves asking the same question. Let us try to clear up this confusion.
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Investing through the Systematic Investment Plan (SIP) route is a beneficial way of building a corpus for your future needs. In case of SIP, you invest a fixed amount periodically (every week, fortnight, month, etc.) over the long term in a fund of your choice. Whatever be your goals, you can achieve them through regular investments in a high-growth fund by following the discipline of regular investing without getting distracted by the noise in the markets. The regularity of investments is as important as the fund that you select for your investments
Watch videos to understand Edelweiss STeP Facility
Frequently Asked Questions
STeP stands for Smart Trigger enabled Plan . In a basic Systematic Transfer Plan (STP), you can transfer money from one scheme to another at periodic intervals that could be fortnightly, monthly, or even quarterly
- You can plan your investments in a staggered manner over a period of 6 to 12 months.
- You can schedule the transfer with every 2% or 3% fall in the target scheme’s NAV.
- It helps you keep your equity gains safe by systematically transferring them to a relatively safer debt scheme.
STP (Systematic Transfer Plan) is a mutual fund investment option, which allows investors to transfer a fixed amount of money at a specified frequency (e.g. weekly, monthly, quarterly) from one mutual fund scheme to another. The objective of STP is to reduce market timing risk by averaging the purchase price of the target mutual fund scheme over time.
On the other hand, Edelweiss Step-Up Facility is a feature offered by Edelweiss Mutual Fund, where the investor can increase their SIP (Systematic Investment Plan) amount in a specified frequency, thereby enabling them to increase their investment amount as their income grows. The main objective of the Edelweiss Step-Up Facility is to encourage investors to save and invest more over time, without having to go through the hassle of updating their SIP amount manually.
Yes, there are risks associated with Edelweiss STEP facility.
First, the stock market can be volatile and the value of equity investments can fluctuate, leading to potential losses.
Second, there is also the risk of interest rate fluctuations which can impact the value of debt investments.
Third, the fund manager's investment strategy and performance can also impact the returns.
Yes, you can pause Edelweiss STEP facility. The facility allows you to pause the systematic transfer of funds from debt to equity if you feel uncomfortable with the current market conditions or if you need to redirect your funds to another investment opportunity.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
