Among the various strategies followed by mutual fund houses, Systematic Transfer Plans (STPs) provide an excellent opportunity to switch investments from one scheme to the other.

Retail investors normally prefer safety to wealth creation while making their investment choices. Over the years, the bank deposits and post office savings schemes accounted for a major portion of financial savings of the Indian households. Post-liberalization, the drastic reduction in bank deposit rates compelled the investors to look beyond their traditional investment habits.

Investment needs of the people differ from person to person and they require more favorable investment avenues. Among the various investment avenues, the Indian capital market has gained substantial importance in the last few years. The enormous growth of the equity market has induced the investor to reap the benefits of high growth potentials of the Indian capital market without taking the inbuilt high risk. Mutual Funds (MFs) have proved to be a right vehicle for the investor to enter the stock market indirectly.

There was a time when mutual fund houses in India took several weeks to send their redemption cheques and they were reluctant to reveal where the money was invested. But today, the mutual funds chase behind the investors to attract them. The fund houses have introduced a variety of value added services in their schemes to catch the attention of the investors. STP is one such service offered by them.

Portfolio Organizer Magazine, Systematic Transfer Plans, STPs, Retail Investors, Post-liberalization Era, Mutual Funds , MFs, Mutual Fund Scheme, Systematic Investment Plan, SIP, Capital Markets, Net Asset Value, NAV, Equity Markets, Equity Mutual Fund Scheme, Franklin Templeton.