Systematic Transfer Plan: How Does it Work?

Saminashaikh01 Dec, 2021Finance

What is a Systematic Transfer Plan?You may already know how a systematic investment plan (SIP) works in mutual funds. But what is a systematic transfer plan? You can transfer money from your bank account to a mutual fund scheme through an SIP. However, via an STP, you can transfer money from a mutual fund scheme to another. It helps average your investment over a certain term to balance returns and mitigate risks.