In the world of personal finance, staying systematic can be the difference between achieving financial independence and falling short of your goals. Two popular tools that embody this principle are the Systematic Transfer Plan (STP) and the Systematic Withdrawal Plan (SWP). These strategies not only bring discipline to your investment approach but also help you navigate the complexities of market volatility and life's financial milestones.
What is STP?
A Systematic Transfer Plan (STP) allows investors to transfer a fixed amount of money periodically from one mutual fund to another, usually from a debt fund to an equity fund or vice versa.
Why is this important?
Investing in equity markets can be risky, especially if a lump sum is invested during a market high. By transferring money in smaller, regular amounts through an STP, investors mitigate the risk of market timing.
Key benefits of STP
Reduces volatility: Instead of exposing your entire corpus to market fluctuations, STP allows gradual exposure, reducing overall risk. Better utilization of funds: Parking money in a debt or liquid fund earns interest while waiting to be transferred to equity funds. Goal alignment: STP helps align investments with long-term goals, especially when you're gradually moving from lower-risk to higher-risk assets.
Bu hikaye The Free Press Journal dergisinin December 15, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye The Free Press Journal dergisinin December 15, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
No proposal for hike in Ladli Behna money, new registration: Minister
Minister for Women and Child Development Department Nirmala Bhuria has in a written reply informed the House that there is no proposal to increase money under the government's popular scheme Ladli Behna Yojna.
Sara reveals her favourite companion
Actress took to Instagram to share a picture montage of herself
Raj Kundra clears the air
Shilpa Shetty’s husband and businessman Raj Kundra has opened up about his ongoing legal troubles and how the media has influenced public perception of him and his family.
Turn up volume the
When Sonu Sood teams up with India’s ultimate hitmaker, Yo Yo Honey Singh, you can expect the party playlist to be unstoppable.
Notices to 20 absent BJP MPs
The Bharatiya Janata Party will send notices to 20 party Lok Sabha MPs and seek explanation as to why they were not present in the House on Tuesday despite it having issued a whip seeking the presence of all lawmakers.
State axes Bill on hike in illegal tree-felling fine
The Mahayuti govt withdrew an amendment bill that had proposed a multi-fold hike in the penalty for illegal tree felling and recognised branch cutting as an offence. Initially, the bill aimed to curb such practices in urban areas, but when rural parts were included under the proposed law, the state decided to do a rethink.
Fake admission racket at Somaiya University; 3 held
The Tilak Nagar police have arrested three persons, including two clerks and a middleman, for orchestrating a fake admission scam across three institutions under Somaiya Vidyavihar University.
Gas nozzle explosion injures worker
While filling a two-wheeler with CNG, a gas nozzle exploded, damaging the eye of an permanently employee in Pune, an official said on Tuesday.
Sara reveals her favourite companion
Pakistani actress Mahira Khan reveals how viral smoking photos with Ranbir Kapoor affected her
Sonakshi fires back strongly
Sonakshi Sinha gave a befitting reply to Mukesh Khanna after the latter made some comments about her bringing after she failed to answer a question about the Ramayana.
