STP Calculator

An STP calculator is a simple tool that helps investors plan and calculate the amount they want to transfer systematically from one mutual fund scheme to another over a specific period. It shows how much money will be moved and helps you estimate returns, making it easier to manage your investments efficiently.

A Systematic Transfer Plan (STP) calculator helps you plan and calculate the transfer amount from one Mutual Funds to another at regular intervals. Here's how it works step by step:

Step 1: Specify the Transfer Amount and Frequency

Choose how much money to transfer and how often, such as quarterly or annually.

Step 2: Deduct and Invest in the Growth Fund

You choose a fixed amount that will deducted from the source fund (liquid fund) and invested in the growth or target fund.

Step 3: Calculate the Interest Earned

Interest will be calculated for both:

• The source fund: based on the remaining balance after the transfer.
• The target fund: including compounded interest on the transferred amount.

Step 4: Show Final Values

The final value will include:

• The growth fund's total (transferred amount + profit).
• Interest earned on the remaining balance in the source fund.

Example of Systematic Transfer Plan Calculator Works:

Now, imagine you invest Rs.5,00,000 in a liquid fund, earning 7% interest annually and transfer Rs.9,843 monthly to an equity fund with 11% returns for 60 months. By the end, your equity fund will grow to Rs.8,41,019, and the liquid fund will hold Rs.68,109; this means your final value will be Rs.9,09,128. Check the table below for more clarity:

Here's how you can use the STP Calculator on MySIPonline:

1. Input the Investment Amount

You enter the total amount you want to invest or transfer from one mutual fund (source fund). suggested to choose a low-risk fund, eg liquid or debt funds.

2. Choose the Transfer Frequency

Decide how often you want to transfer Mutual Funds (e.g., weekly, monthly, or quarterly).

3. Set the Transfer Amount

Specify the amount to be transferred each time.

4. Select the Duration

Choose how long you want the transfers to continue (e.g., 6 months, 1 year).

5. Interest/Growth Rate (Optional)

Some calculators may let you input an expected rate of return for both the source and target funds to estimate growth.

6. Review Results

The systematic transfer plan calculator displays how much will be transferred each time, the remaining balance in the source fund, and the accumulated value in the target fund.

7. Adjust & Plan

You have the flexibility to adjust your investment amount to meet your financial goals. Moreover, it is easy to change the transfer amount, frequency and investment duration via the STP calculator.