STP Details

₹10 L
₹1 L₹1 Cr
₹20K
₹1K₹5 L
3 yr
1 yr10 yr
7%
1%15%
12%
1%30%

Destination Fund Value

₹0

Total Transferred

₹0

Est. Returns

₹0

Source Balance Left

₹0

Why use an STP?

An STP moves a lumpsum into equity gradually instead of all at once, reducing the risk of investing at a market peak — while the uninvested balance keeps earning debt-fund returns instead of sitting idle. It's essentially a SIP funded from your own lumpsum rather than your monthly income.

How the STP Calculator Works

Your lumpsum sits in a source fund (usually debt/liquid) and a fixed amount is transferred out at regular intervals into a destination equity fund. The calculator simulates both sides — the source fund depleting and the destination fund's SIP-style growth — to project your combined position at the end of the transfer period.

Example Scenarios

Scenario Result
₹10 lakh lumpsum, ₹1 lakh/month transferred over 10 months Averages entry into equity over ~1 year
₹5 lakh lumpsum, ₹25,000/month over 20 months Slower, more risk-averse phased entry
₹20 lakh lumpsum, ₹2 lakh/month over 10 months Faster deployment for a more confident market view

* Illustrative estimates assuming constant annual returns. Actual results vary with market conditions.

Frequently Asked Questions

Common Mistakes to Avoid

  • Leaving money in the source fund for too long, missing out on equity market gains during a rally.
  • Transferring too aggressively (very short duration), which defeats the purpose of averaging entry price.
  • Forgetting that gains in the source (debt/liquid) fund are also taxable on each transfer.

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* Calculations assume constant annual returns. Actual mutual fund returns vary. Past performance is not indicative of future results. FD comparison uses 7% p.a. SIP returns are compounded monthly.

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