Investors are advised to put money in equity funds via systematic transfer plans (STPs). This involves putting money in a liquid or ultra short-term fund and then transferring a fixed sum to a chosen equity fund. What is the ideal tenure of an STP? We ask the experts.
Swarup Mohanty, chief executive officer, Mirae Asset Global Investments (India) Pvt. Ltd
Investors who have regular income prefer to invest their money in equities through the systematic investment plan (SIP) route, while investors having irregular income or those who have a one-time surplus, prefer the STP route of investment. The advice of investing through STP route should be similar to that of the SIP.
