Systematic Transfer Plan (STP): How to Rupee-Cost Average Lump Sum Amounts
Renjith Pillai
Senior Systems Architect & Financial Analyst
If you receive a lump sum—such as an annual bonus, property sale, or maturity payout—investing it all into equity in a single day carries peak market risk. A Systematic Transfer Plan (STP) solves this.
How STP Works
Park the lump sum in a low-risk Liquid Debt Fund (the Source Fund) and set up an automated monthly STP transfer to an Equity Fund (the Target Fund) over 12 to 24 months. Your idle capital earns debt returns while being dollar-cost averaged into equities.
Frequently Asked Questions
Is STP subject to capital gains tax?+
Can I do STP between different mutual fund houses?+
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Calculate SWP & STP Withdrawal Schedules →Renjith Pillai
Senior Software Engineer & Network Specialist
Renjith Pillai is a senior software engineer and financial tools author with over 12 years of experience. He built EasyCalcs.in to provide high-precision, privacy-first technical tools and financial calculators for investors, engineers, and consumers.