STP Calculator – Systematic Transfer Plan

A Systematic Transfer Plan (STP) is a smart way to move a lump sum investment from a liquid or debt fund into an equity fund gradually. Instead of investing all your money in equity at once, STP allows you to transfer a fixed amount periodically, helping reduce market timing risk.

STP Wealth Builder

STP Phase

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How STP Works – Liquid Fund to Equity Fund

Here’s a simple explanation:

  1. You invest a lump sum amount in a liquid fund
  2. Every month, a fixed amount is transferred to an equity fund
  3. The remaining balance continues to earn returns in the liquid fund
  4. Over time, your equity investment grows through compounding
This STP calculator simulates this process using:
  • Your investment age
  • Monthly STP amount
  • Expected return from liquid fund (source)
  • Expected return from equity fund (target)

 

STP vs SIP – What Is the Difference?

FeatureSTPSIP
Source of InvestmentLump sumMonthly savings
Ideal ForInvestors with lump sumSalaried investors
Market EntryGradualGradual
Uses Liquid FundYesNo

👉 STP is best when you already have money
👉 SIP is best for regular income planning

Many investors use STP + SIP together for optimal wealth creation.

What is an STP in mutual funds?

An STP (Systematic Transfer Plan) allows investors to gradually transfer a fixed amount from a liquid or debt fund to an equity fund at regular intervals, helping reduce market timing risk.

Who should use an STP calculator?

An STP calculator is ideal for investors who have a lump sum amount and want to invest in equity gradually instead of investing all at once.

Is STP better than SIP?

STP is better if you already have a lump sum to invest, while SIP is suitable for investing from regular monthly income. Both serve different purposes.

Can STP be started from a liquid fund?

Yes. STP is commonly started from liquid or ultra short-term debt funds and transferred to equity funds.

Does STP reduce market risk?

STP helps reduce market entry risk by spreading equity investments over time, especially during volatile or high market conditions.

What happens if the source fund gets exhausted?

If the source fund gets exhausted, the STP stops automatically. The calculator shows the age at which the source fund may exhaust.

Are the STP calculator results guaranteed?

No. The results are illustrative and based on assumed returns. Actual mutual fund performance may vary due to market conditions.