When I consolidated my finances and started my investments in mutual funds, I opted for a Systematic Investment Plan (SIP) but the SIP-debits came from a lumpsum that I already had in my savings account. I think a better option would have been to park the lumpsum in a Systematic Transfer Plan (STP) and from there route the debits into the mutual fund(s) of my choice.
The SIP would be a better choice when you don’t already have a lumpsum to invest but instead rely on other regular sources of income such as your salary for the investment amount.
What do you think?
[sniplet tip tuesdays]
2 thoughts on “Tip Tuesdays: Choose An STP When You Have A Lumpsum To Invest And An SIP When You Don’t”
have lumpsum investment in ICICI pru Flexible Income Regular Growth with STP and Switch Out – To ICICI Pru Dynamic Growth
Hi..
I am using STP Facility Since From Year 2000-2001 for my Retirement Corpus..Every Year me & my wife ..both deposit Rs.50,000/- each in (1).HDFC Equity Fund(2).Birla Front line Equity Fund(3).Franklin Bluechip Fund..ONLY Three Funds..Every Six months , we review our investment…
We are using STP as LADDER System….if you want any query,,pl write…
Thanks
Nikhil Shah
Mobile No.+ 91 98796 85266