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STP Calculator
₹ 1,00,000
₹ 50,00,00,000
1 Year
30 Years
₹ 1
₹ 5,00,00,000
1%
13%
1%
13%
Initial investment in source scheme
₹ 1,20,00,000
Amount remaining in source scheme
₹ 2,30,03,869
Total investment in target scheme
26
Future market value of target scheme
₹ 2,70,275
Total earnings from STP
₹ 2,60,00,000
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STP calculator: An overview
Picture a scenario where you possess a significant amount of money in a debt mutual fund. You may be earning a reasonable amount of interest, but you want greater wealth-building potential over the long term. However, the volatility of the stock market makes you apprehensive.
This is where a Systematic Transfer Plan (STP) can come in.
STPs allow you to gradually shift your investments from one mutual fund scheme to another scheme offered by the same mutual fund house. An amount of your choosing is transferred at a pre-determined frequency (weekly, monthly, quarterly etc).
STPs are typically used to transfer funds from a more relatively stable avenue (such as debt mutual funds) to a higher risk avenue with higher return potential, such as equity funds.
However, determining the optimal transfer amount based on anticipated returns, desired goal amount and investment horizon can be challenging. An STP calculator can make this process easy and quick.
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How do STP calculators work ?
STP calculators help you plan how to transition your funds from a debt to an equity mutual fund scheme by automating complex calculations and providing instant estimates. Such calculators typically require you to input some basic information such as your initial corpus size, STP amount, tenure, and expected return rates. The calculator determines your final corpus size within seconds.
You can also adjust these inputs to see the resultant impact on your corpus and accordingly plan your investments.
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How to use the Bajaj Finserv AMC STP Calculator?
The Bajaj Finserv AMC STP Calculator is easy to use. Here are the steps you need to follow:
- Enter investment amount in the source scheme: This is the initial amount parked in the debt fund.
- STP amount: This is the fixed amount you plan to transfer every month from your debt fund to the equity fund.
- STP tenure: This is the total period (in years) for which you want to do the STP.
- Expected return from target scheme: This is expected rate of return from the scheme you plan to invest in.
- Expected rate of return from source scheme: Similarly, you need to enter the rate of return from the fixed-income scheme you are currently investing in or plan to invest in.*
*The calculator’s results are for illustrative purposes only. There is no guarantee that the amount displayed on the calculator will be achieved. Moreover, returns are not guaranteed and may vary depending on market conditions.
Once you've entered these numbers, the calculator does the rest and tells you the projected future value of your STP investments. This can help you develop a clear investment plan. You can also enter different values to choose an STP amount and tenure that aligns with your goals. However, it is important to note that the calculator assumes a fixed rate of return. In reality, returns are not guaranteed and may vary based on market trends.
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Benefits of STP calculator
Here are the key benefits of using a Systematic Transfer Plan calculator to plan your investments:
Simplified calculation process
The STP calculator provides instant results. factoring in compounding, where reinvested returns generate further returns. Manually calculating this for STPs is challenging, as each instalment has a different compounding period.
Planning and goal setting
The calculator helps you plan your investment journey by allowing you to easily visualise your potential final corpus. This helps you to set realistic goals and can give you motivation to stay on track with your investments and work towards your long-term objectives.
Informed decisions
The calculator allows you to experiment with different investment scenarios. You can adjust the STP amount, tenure, and expected returns, to see the impact on your final corpus. This helps you make a more realistic plan that aligns with your goals and your investment capacity.
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Reasons to invest through STP
A Systematic Transfer Plan (STP) can help mitigate risks while transitioning from a lower-risk avenue to a more volatile one. It can also combine the growth potential of equity mutual funds with the relative stability of debt funds by keeping some money in both avenues. Here are some other benefits of STP:
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Rupee-cost averaging
By investing a fixed amount at regular intervals, you purchase more units when markets are down and fewer units when prices are high. Over time, this can reduce the per-unit cost of your investment and potentially reduce the impact of volatility.
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Discipline and consistency
STPs require a disciplined investment approach as you invest a fixed amount at a regular frequency, regardless of market conditions. This can save you the trouble of timing the market. Moreover, it encourages a long-term view towards investing.
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Gradual exposure to equity
An STP allows you to gradually increase your exposure to equity without needing to time the market or invest all your money at one go. Moreover, the money invested in the debt fund continues to potentially earn more interest than it would if it were lying idle in a savings account. Please note, however, that interest rates in savings bank account are fixed. However, returns in mutual funds are not guaranteed and are subject to market risk.
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Explore Our Mutual Fund Schemes
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Regular
Direct
Bajaj Finserv Flexi Cap Fund
Equity Fund Regular GrowthNAV
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as of
Min. Investment Amount
Inception Date
14/08/2023
Risk Type Very High
Bajaj Finserv Large Cap Fund
Equity Fund Regular GrowthNAV
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as of
Min. Investment Amount
Inception Date
20/08/2024
Risk Type Very High
Bajaj Finserv Large and Mid Cap Fund
Equity Fund Regular GrowthNAV
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as of
Min. Investment Amount
Inception Date
27/02/2024
Risk Type Very High
Bajaj Finserv Multi Asset Allocation Fund
Hybrid Fund Regular GrowthNAV
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as of
Min. Investment Amount
Inception Date
03/06/2024
Risk Type Very High
Bajaj Finserv Balanced Advantage Fund
Hybrid Fund Regular GrowthNAV
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as of
Min. Investment Amount
Inception Date
15/12/2023
Risk Type Very High
Bajaj Finserv Arbitrage Fund
Hybrid Fund Regular GrowthNAV
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as of
Min. Investment Amount
Inception Date
15/09/2023
Risk Type Low
Bajaj Finserv Money Market
Debt Fund Regular GrowthNAV
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as of
Min. Investment Amount
Inception Date
24/07/2023
Risk Type Low To Moderate
Bajaj Finserv Overnight Fund
Debt Fund Regular GrowthNAV
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as of
Min. Investment Amount
Inception Date
05/07/2023
Risk Type Low
Bajaj Finserv Liquid Fund
Debt Fund Regular GrowthNAV
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as of
Min. Investment Amount
Inception Date
05/07/2023
Risk Type Low To Moderate
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Frequently Asked Questions
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The minimum amount can vary from one scheme or mutual fund company to another. Some schemes offer STPs starting at Rs 500 or Rs 1,000.
A Systematic Investment Plan (SIP) involves investing a fixed amount of money at regular intervals into a mutual fund scheme. On the other hand, an STP involves transferring a fixed amount of money at regular intervals from one mutual fund scheme to another—typically from a debt scheme to an equity-oriented one – of the same mutual fund company.
Yes, you can, though the process may vary from one company or platform to another. Many mutual fund companies may require you to stop an ongoing STP and start a new one with a different amount or date.
Typically, a minimum of six transfers are required for an STP.
The policy may vary from one mutual fund company to another. You may have to pay a nominal exit load for STP transactions carried out before a certain time period (such as six months).
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.
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Disclaimer: The calculator alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. This tool is created to explain basic financial /investment related concepts to investors. The tool is created for helping the investor take an informed decision and is not an investment process in itself. Mutual Fund does not provide guaranteed returns. Investors are advised to seek professional advice from financial, tax and legal advisor before investing.
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- Bajaj Finserv Asset Management Limited has been referred to as Bajaj Finserv AMC.
Copyright: All Rights reserved at Bajaj Finserv Asset Management Limited
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