" Bulls make money, Bears make money, Pigs get slaughtered "

Systematic Transfer Plan (STP) is a mechanism by which an investor is able to transfer a fixed or variable amount from one mutual fund scheme to another mutual fund scheme. STP is primarily used by investors to transfer from debt funds to equity funds and vice versa. If you are bullish about the market, at the same time concerned about short term volatility, you can use STP to withdraw fixed amounts from your debt fund and transfer to equity funds on a regular basis over several months. On the other hand, if you think that the market is near its peak and a deep correction is imminent, you can withdraw fixed amounts from your equity fund and transfer to your income fund using an STP. Types of Systematic Transfer Plan There are two types of Systematic Transfer Plan (STPs):- Fixed STP  in which investors can transfer a fixed amount at regular intervals from one scheme to another Capital Appreciation STP  in which investors can take out the profit of a scheme and transfer