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The ideal investment tool ii to become rich- stp

Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest.

You can’t win until you do this.

--Dave Ramsey

the iDeal investment tool ii to Become rich- stpSTP (Systematic Transfer Plan)


Systematic Transfer Plan (STP) is a strategic tool used for transferring a certain amount of money from debt to, let’s say, equity mutual fund.

In situations where my client has a clustered lump sum amount to invest, but the market is at a high, I recommend this strategy.

  1. Safe return - While the hefty sum of our client is parked in the debt fund, it saves from the ups and downs of the Hence, by choosing to invest in a debt fund, you systematically transfer a fixed amount over six months to one year from this debt fund to equity fund.
  2. Averaging of rupee cost method - STP helps in the averaging cost of buying equity over, let’s say, six It abolishes the fear of purchasing during highs or lows.
  3. The chance to Rebalance the client’s portfolio - To maintain the same ratio as equity-debt, I use this tool to keep a balance or vice versa When I find that investment in debt is increasing, I transfer money to equity through a systematic transfer plan. On the other hand, if investment in equity goes up, money can be switched from equity to debt fund.
  4. Taxation aspect of Systematic Transfer Plans - When you transfer money from a debt fund, it is considered as redemption, which is taxable, depending on the holding
  5. How long to continue STP - By and large, a minimum of 6 such transfers are required to invest in STP.
  6. You have to invest a minimum amount for a Systematic Transfer Plan - It also varies from one fund house to the Also, the fund houses may define the minimum amount of STPs to be carried.
  7.   The transfer can be weekly, fortnightly, monthly and quarterly.
  8. I check for the exit load period of the debt fund while investing through the

It would help to understand these benefits and how they would help in your journey to wealth creation.

May that success come to you easily.

financial advisor in gurgaon

Taressh Bhatia is a CFPCM  cfpCERTIFIED FINANCIAL PLANNER CM and is the founder/partner of Advantage Financial Planner LLP – A firm Registered with SEBI (Securities and Exchange Board of India) as RIA (Registered Investment Advisor).

If you have Liked the blog You can read more in the book – The Richness Principles.
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About ADVANTAGE FINANCIAL PLANNERS LLP: The Firm is registered with Government Of India-The Ministry of Company Affairs as a partnership firm. The firm is registered with SEBI (The Securities and Exchange Board of India) as "Registered Investment Advisors (RIA) under the SEBI (Investment Advisers) Regulations, 2013. Registration with SEBI as "Registered Investment Advisors (RIA) brings more formal approach, risk profiling, disclosure, and transparency. While the firm is a fee-based investment advisor, this brings you the opportunity to get unbiased, researched, accurate, transparent and professional advice. The firm is managed by the founder and its Partner, Taresh Bhatia. The company provides financial planning advisory services from its office in Gurgaon, India. The firm specializes in investment planning, retirement planning, tax planning, personal financial planning and wealth management. About Taresh: Taresh Bhatia is CFPCM CERTIFIED FINANCIAL PLANNERCM. He provides fee-only financial planning advice. He has helped over 300 families plan and organizes their economic life so as to move positively towards their financial goals. Taresh is an expert on financial advice and has three decades of industry experience. Among his qualifications, he is a CFPCM CERTIFIED FINANCIAL PLANNERCM and an MBA from IMI, New Delhi. He is also a member of the Financial Planners' Guild, India (FPGI), an association of Practicing Certified Financial Planners. If you have any questions, please email us at

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