Finance

Tip Tuesdays: Choose An STP When You Have A Lumpsum To Invest And An SIP When You Don’t

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

  1. 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

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