STPs are a great way to automatically rebalance your portfolio between various schemes. We already published a detailed post about the same when we launched the facility sometime last month. Have a look here - What is a Systematic Transfer Plan (STP) and how to use one? We have built the functionality ground up, to be as flexible as possible. In this post, we'll show a step-by-step process on how you can initiate an STP on Expowealth and even how you can cancel one.
Step 1: Determine the purpose
As indicated in our detailed post, one could use an STP to move your holdings periodically between equity to debt, debt to equity or even within schemes of the same category. For example, let's say you believe your portfolio needs to shift from debt to equity, in either large cap or multi-cap schemes. For the sake of example, we are assuming a shift from an Ultrabond short-term fund, to a multi-cap fund.
Step 2: Select the STP parameters
In the next screen,...
One of the biggest worries we have while investing is a lack of assurance as to whether or not we are 'timing-it-right'. And that's the thing about investing in markets - One never knows what the right time is. This is the exact reason why people are more comfortable investing in mutual funds through SIPs rather than making a lump sum purchase. With SIPs, since a specific amount is invested at regular intervals, one does not have to worry much about timing the market as the purchase value of your investment gets averaged through the ups and downs of market movements.
But what happens when you get those mid-year or year-end bonus payouts? Investing this amount, which can be typically 10-30% of your annual CTC in one single transaction would definitely make you hesitant, won't it? Or what if you want to switch a significant chunk from debt to equity funds or the other way around? This is where a systematic transfer plan (STP) works fabulously to periodically...