STP
Currently stock market is facing a downfall and it is very common. At this kind of condition, either STP or SIP will act beautifully and it makes sure that you will not purchase the business at a higher price. People who don’t have a regular income can invest in lump sum only when margin of safety rule is satisfied otherwise it is better to go with STP strategy.
One of the equity investment strategies is Systematic Transfer Planning (STP). In STP, Investor will park his capital in debt fund and then systematically transfer his capital from debt fund to equity. There are two things happens simultaneously in STP, one is capital parked in debt fund will see a steady growth and at the same time STP installment amount is transferred to the equity. Investor can transfer 1% or 2% of the capital or through capital appreciation method to the equity. This investment strategy makes sure that investor will not pay too much price to the business.
“Save, Invest and Be Happy”
