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11. Systematic Transfer Plan
1) What is Systematic transfer plan (STP)?
2) When can I do an STP and for which funds?
3) To start an STP, can I choose the date and frequency of my convenience?
4) What are the basic requirements for setting up an STP?
5) Does entry and exit load apply in STP?
6) How do I register for an STP with Fundsupermart.com?
7) Are there charges for setting up an STP on Fundsupermart.com?
8) Can I have the STP on the date and frequency I want?
9) Can I place an STP from the scheme of one AMC to the scheme of another AMC?
10) Can I terminate an STP before it's the tenure ends? What is the process?
11) What is the turnaround time for terminating the STP?
12) Can I place an STP application from one fund to multiple funds within the same AMC?
13) If I place an STP from fund A to fund B for which I have no holdings, will the minimum initial investment amount criteria apply to me?
14) Will I be informed once the STP gets registered?
15) When will the STP be processed?
16) What will happen after the STP transaction is processed? Will I receive a notification?
17) Can I redeem from the Transferor fund?
18) Can I redeem from transferee fund?
19) Will I be informed if the transaction fails?
20) What will happen on completion of the STP tenure?
| Q: |
What is Systematic transfer plan (STP)? |
| A: |
STP stands for Systematic Transfer Plan. STP permits investors to periodically transfer a specified sum from one scheme to another within the same fund house. In an STP, the transfer is considered as a redemption of units from the first scheme i.e., the scheme from which the transfer is made (transferor fund).The redemption proceeds are invested into the second scheme (transferee fund). |
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| Q: |
When can I do an STP and for which funds? |
| A: |
A. Investors who want to invest a lump sum of money in schemes with stable returns and ensure a small exposure to equity schemes in order to have the potential for higher returns that is possible through equities. Another aspect of an STP is lowering risk and increasing returns. This is best suited for situations when markets have peaked or the investor is unsure of a further rise in the market.
An investor can follow the given steps -
- Invest a lump sum amount in a debt-oriented scheme (debt schemes can be either 100% debt or can have combination of high debt and low equity).
- Specify a desired amount to be transferred to any of the equity schemes of the same AMC. This works like a SIP (Systematic Investment Plan). |
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| Q: |
To start an STP, can I choose the date and frequency of my convenience? |
| A: |
The frequency, date and the investment amount for STP depend on the procedure followed by an AMC.
Presently on our platform, we have an STP for those AMCs which have weekly and monthly frequency facility with the date being any day/date for weekly and 1st, 7th, 10th, 14th, 21st, 25th and 28th of every month.
Please read the scheme information document/statement of additional information for more details.
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| Q: |
What are the basic requirements for setting up an STP? |
| A: |
The basic requirement for setting up an STP is that you need to have a holding under the transferor fund.
For more details, please refer to the offer document/ scheme information document/ statement of additional information.
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| Q: |
Does entry and exit load apply in STP? |
| A: |
The loads are applicable as per the procedure followed by an AMC. There is no entry load but if the transferor fund levies exit loads then it will be applicable.
For more details, please refer the offer document/ scheme information document/ statement of additional information. |
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| Q: |
How do I register for an STP with Fundsupermart.com? |
| A: |
To register for an STP with Fundsupermart.com you need to open account with us.
Login to your account > Go to tab SYSTEMATIC TRANSACTION > Apply STP > Select the fund house > Select the Fund Name > Read and agree on term and condition, click next > Select the folio number (if you already hold that fund in your FSM account) > Enter STP amount > Enter No. of iinstallments > Choose STP Date > Click on confirm. |
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| Q: |
Are there charges for setting up an STP on Fundsupermart.com? |
| A: |
For setting up a STP with Fundsupermart.com there is no charge. If the fund levies an exit load then you will be charged the exit load as applicable by the fund house itself.
For more details, please refer the offer document/ scheme information document/ statement of additional information.
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| Q: |
Can I have the STP on the date and frequency I want? |
| A: |
The frequency, date and the investment amount for STP depends on the procedure followed by an AMC.
Presently on the FSM platform, we have an STP for those AMCs which have monthly frequency facility with the dates being 1st, 7th, 10th, 14th, 21st, 25th and 28th of every month. |
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| Q: |
Can I place an STP from the scheme of one AMC to the scheme of another AMC? |
| A: |
STP permits investors to periodically transfer a specified sum from one scheme to another but of the same AMC. |
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| Q: |
Can I terminate an STP before it's the tenure ends? What is the process? |
| A: |
You can terminate an STP whenever you wish to and there are no charges.
To terminate STP you need to log in to your account under the tab Transactions Systematic Transaction > View / Renew plan > click on Terminate link for the fund which you wish to terminate STP > enter your login password and click on Terminate.
Please note: STP termination request needs to be sent 5 working days prior to your next STP date. Instructions received after the specified STP date will take effect on the next contribution date. |
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| Q: |
What is the turnaround time for terminating the STP? |
| A: |
On receipt of the request it takes 5 working days to terminate an STP. |
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| Q: |
Can I place an STP application from one fund to multiple funds within the same AMC? |
| A: |
Yes, you can have STPs from one fund to multiple funds within the same AMC. However, for every STP registration with a new transferee fund, there would have to be a fresh request on the FSM platform.
For e.g.:
1. STP registration request can be set up for from fund A to fund B
2. For fund C, register a new STP from fund A to fund C
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| Q: |
If I place an STP from fund A to fund B for which I have no holdings, will the minimum initial investment amount criteria apply to me? |
| A: |
Even though you have no holding under fund B still you can register for an STP in that fund.
For more details, please refer the offer document/ scheme information document/ statement of additional information.
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| Q: |
Will I be informed once the STP gets registered? |
| A: |
On successful STP registration, you will receive a confirmation e-mail in your registered account. |
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| Q: |
When will the STP be processed? |
| A: |
The STP transaction will be processed on the date selected by you every month while creating the STP transaction.
For e.g.: If you have registered the STP on 30th and the STP date selected is 7th of every month, then the transaction will be processed on 7th of every month.
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| Q: |
What will happen after the STP transaction is processed? Will I receive a notification? |
| A: |
Once your transaction is processed successfully, you will receive an e-mail notification confirming the transaction. |
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| Q: |
Can I redeem from the Transferor fund? |
| A: |
You can redeem from the transferor fund but in the following situations your STP will be auto terminated:
1. In case you place full redemption of your holdings in the transferor fund
2. If the STP transaction fails for two consecutive months
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| Q: |
Can I redeem from transferee fund? |
| A: |
Yes, you can redeem units from the transferee fund. |
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| Q: |
Will I be informed if the transaction fails? |
| A: |
Yes, an e-mail notification will be sent to you informing you about the transaction failure. |
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| Q: |
What will happen on completion of the STP tenure? |
| A: |
On completion of the STP tenure, the transfer between chosen funds will be automatically terminated. |
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For further assistance, call our helpline at +91 22 4219 9494 from 9.30 am to 5.30 pm on Monday to Friday, (excluding Saturday, Sunday and public holidays).
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