SIP+STP Calculator: What if you have a large amount to invest in equity mutual funds, the market is rising, shares are overpriced, and many stocks are turning multibaggers? Will you go for it? Will you not? It is impossible to time market. A steep market can go steeper, or it can fall sharply. But it is hard to predict. Many investors may avoid taking the risk of a lump sum investment in a rising market. But they may still want to benefit from the market in the long run. What can be the solution to investing a lump sum amount? For such mutual fund investors, systematic investment transfer (STP) can be a way to transfer money from one mutual fund to another fund scheme. In this write-up, know how STP works and how one can convert a Rs 20 lakh lump sum amount into a Rs 1.46 crore corpus in 20 years.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert before financial planning.)