MF STP (Systematic Transfer Plan)

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apurba asked 9 years ago

hello sir, I have a lump sum amount of 1 lakh, I want to invest it, is it good to do FD or STP. If STP lease suggest me funds for it and can i do it online? Please suggest me.

3 Answers

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Sreekanth Staff answered 9 years ago

Hi, Before shortlisting the suitable investment option(s), let me know your time-frame and investment objective(s)?? Kindly read: http://www.relakhs.com/investment-planning-investment-plan/ http://www.relakhs.com/avoid-fixed-deposits-rds-for-long-term/ http://www.relakhs.com/list-of-best-investment-options-schemes-in-india/

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Sreekanth Staff answered 9 years ago

Hi, If your time-frame is around 3 years, you may consider investing in MIP (growth) fund or in a dynamic Debt fund. Kindly read: http://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/ http://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/ Below is your reply which you have posted in another thread: hello, sir
i want this money after 3 year,and i want to get best return from it, so please suggest me.
and i too want to invest in UTI mutual fund.please suggest me fund name.Here time frame also 3 year.is it good to invest lumpsum of in sip. (Kindly post your replies related to this thread here itself. Please do not publish your replies as separate questions. Thank you!)

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kaamleshpatel answered 7 years ago

When it comes to investing lump sum amounts in systematic transfer plans as opposed to bank fixed deposits, the amount of money invested is the deal breaker that can help you determine which investment option to consider. An STP essentially provides the same potential for lower risks with higher returns as SIPs. In STPs, you need to transfer money from one mutual fund to another. Choose a short-term debt fund from the same fund company and transfer the ₹100,000 into a chosen equity each month. Banks offer very low interest rates on fixed deposits that remain the same for the entire FD term. If ₹100,000 is invested for one year, you may find that there isn’t much of a difference in profits accrued; you’d possibly get a 1000-1200 more from systematic transfer plan as opposed to FDs. However, if you opt for a 3 year FD vs STP, you can benefit from changing market conditions, and possibly higher returns with STP, while you’d get a fixed sum on maturity with your FD. Regards, Kamlesh Patel