Simulate Systematic Transfer Plans to systematically transfer capital from liquid debt funds to high-growth equity mutual funds.
Did this calculation save you time?
Student ProjectHi! I'm a student developer building Calculat in my spare time. I was tired of searching for basic math tools and having to click through 10 spammy popups, loan ads, and cookie trackers.
I keep this website 100% free, private, and ad-free. If this helped you with your homework, project, or finances today, bookmarking this page or telling a friend helps me keep building more free tools!
A Systematic Transfer Plan (STP) is an automated wealth management strategy that lets an investor park a lump sum in a low-risk source fund (such as a liquid or debt mutual fund) and systematically transfer a fixed dollar amount each month into a higher-growth target fund (such as an equity index or thematic fund). Both funds continue compounding simultaneously.
S_{m+1} = (S_m \times (1 + r_s)) - T \quad ; \quad E_{m+1} = (E_m + T) \times (1 + r_e)At each month m, remaining source balance S earns monthly return r_s before transfer T is deducted. The transferred capital joins target balance E and earns equity return r_e.
Scenario: Lump sum of $100,000 parked in a liquid fund (6% return) transferring $2,500/month for 36 months into an equity fund (12% return).
Source fund begins at $100,000, earning ~0.50% per month while funding 36 monthly transfers.
Total transferred over 36 months: $90,000. Remaining source fund: ~$25,300 due to intermediate interest.
Target equity fund accumulates transfers plus 1% monthly compounding, reaching ~$108,000.
Total Combined Corpus: ~$133,300 against the original $100,000 deposit.
An STP eliminates the psychological stress and downside risk of investing a large lump sum right before a market drop. Your money earns steady liquid debt interest while rupee-cost averaging into the equity market.
Generally no. Mutual fund regulations require both the source scheme and target scheme to be managed by the same Asset Management Company (AMC).
Once the source fund capital is completely exhausted, the automated STP instructions conclude automatically without penalty. Your target fund continues compounding undisturbed.
Yes. Each monthly transfer out of the source fund is legally treated as a redemption of debt fund units, which may trigger short-term capital gains tax depending on holding duration and local jurisdiction.
Calculate long-term wealth accumulation and compound returns from monthly Systematic Investment Plans in mutual funds and index funds.
Calculate maturity value, compound interest earned, and effective annual yield (APY) on bank fixed deposits and CDs.
Calculate Return on Investment (ROI), Compound Annual Growth Rate (CAGR), and total wealth multiplier for any asset or project.