Systematic Transfer Plan also know as booster STP. Everyone wants financial freedom. For that he or she participates in activities where there is not much concern about money. However, achieving financial independence requires a subtle approach to investment and perseverance to taste the sweet fruits of disciplined investment. Most people find this work tedious. ICIPI Prudential Mutual Fund has introduced SIP and Booster STPA schemes to facilitate such investors.
The Concept of Booster STP (Systematic Transfer Plan)
The main concept or objective of Booster STP is to help the investor to buy more units when the market collapses (or vice versa). Booster STP has two parameters. The amount and duration of an investment are naturally variable. In this feature, even a small amount can be invested as installment when the equity valuation is high and when the valuation is low, the investment is high.
Market valuation is decided according to the equity valuation index. This is a model owned by ICICI Prudential AMC.
For example, if an investor chooses an STP of Rs. 10,000 per month, then depending on the market conditions, the amount of STP can range from Rs. 1000 to Rs. Will be. Due to its flexible duration, investment funds are divided in such a way that market opportunities are effectively exploited.
Investment with Booster STP
Now that the stock market is trading at an all-time high, it is not easy to make a one-time investment. An optimal approach is to invest in hybrid or debt funds for a specific period of time. For this, STP (Systematic Transfer Plan) can be started in the equity fund. A fixed amount will be transferred here every month. Both the transfer amount and the duration will be fixed. However, a better way to do STP is with Booster STP.
Conclusion
In short, Buster STP features that can build your wealth, where a fund manager distributes your funds properly. They do their job best.
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