Systematic Transfer Plan (STP)

Sat, 16 May 2026 00:00:00 +0000

A Systematic Transfer Plan (STP) is a facility under which an investor periodically transfers a fixed amount, a fixed number of units, or the capital appreciation from one mutual fund scheme (the source scheme) to another scheme (the destination scheme) of the same AMC at regular intervals, without the transferred amount passing through the investor’s bank account. Each STP instalment is treated as a redemption from the source scheme and a simultaneous subscription to the destination scheme, executed at the respective applicable NAVs on the STP date.

Systematic Withdrawal Plan (SWP)

Sat, 16 May 2026 00:00:00 +0000

A Systematic Withdrawal Plan (SWP) is a facility offered by mutual fund schemes in India that enables an investor to redeem a fixed amount of money, a fixed number of units, or the capital appreciation from their holdings at regular intervals (typically monthly or quarterly), with the redemption proceeds credited automatically to their registered bank account. SWP is structurally the mirror image of a Systematic Investment Plan (SIP) : while a SIP builds a corpus through periodic investments from the investor’s bank account, an SWP converts an existing corpus into a regular income stream paid out to the bank account.

Mutual Fund Product Mechanics on WebNotes

Systematic Transfer Plan (STP)

Systematic Withdrawal Plan (SWP)