Mutual funds have become one of the most popular investment instruments as it offers investors the option to invest systematically and multiply their investments over time. One of the features of mutual funds is the investment through Systematic Investment Plans (SIPs), which allow regular fixed investment in a specific mutual fund scheme. However, due to market volatility or shit in investor goals, it is a common practice to transfer funds or units from one mutual fund scheme to another to either make more returns or decrease the overall risk.
If you are a mutual fund investor, it is vital to know about systematic transfer plans (STPs), as they can help you optimise your returns. This blog will help you understand what systematic transfer plans are and how they can help you invest more efficiently in mutual fund schemes.