Systematic Transfer Plan (STPs) or Systematic Investment Plans (SIPs) are similar in the sense that they help to make regular investments at a fixed frequency. However, they are different in the way they function. We can understand both individually and the difference between SIP and STP.
1. SIP: SIPs are a form of investment in Mutual Funds. It lets the investor invest a fixed amount in any Mutual Fund Scheme at regular intervals, such as daily, weekly, monthly, quarterly, and more. It is more of a systematic and disciplined form of investment in Mutual Funds.
2. STP: STP is when an investor can transfer money from one Mutual Fund Scheme to another Mutual Fund Scheme of the same Fund House. With an STP, you pre-determine a fixed amount to be transferred from
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