STP calculator
What moving a lump sum into an equity fund month by month would be worth today, from both funds' real NAVs.
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From (same fund house)
Popular STPs
Each fund house's largest liquid fund into its largest flexi cap fund: ₹10 lakh, ₹1 lakh a month, started 3 years ago.
- ICICI Prudential Liquid Fund to ICICI Prudential Flexicap Fund
- HDFC Liquid Fund to HDFC Flexi Cap Fund
- SBI Liquid Fund to SBI Flexicap Fund
- Kotak Liquid to Kotak Flexicap Fund
- Nippon India Liquid Fund to Nippon India Flexi Cap Fund
- Aditya Birla Sun Life Liquid Fund to Aditya Birla Sun Life Flexi Cap Fund
- Axis Liquid Fund to Axis Flexi Cap Fund
- UTI Liquid Fund to UTI Flexi Cap Fund
- DSP Liquid Fund to DSP Flexi Cap Fund
- Bandhan Liquid Fund to Bandhan Flexi Cap Fund
What is an STP?
A systematic transfer plan puts a lump sum into one fund, usually a liquid or overnight fund, and moves a fixed amount from it into another fund of the same fund house every month. It spreads the entry into an equity fund over several months instead of one day.
How does this calculator work it out?
From both funds' daily NAVs. The lump sum buys units of the first fund on the month you choose. On the chosen day each month, units worth the transfer amount are sold and the same amount buys units of the second fund at that day's NAV (the next NAV after a holiday). Transfers stop when the first fund can no longer cover a full one. Today's value is both holdings at the latest NAVs; the return is XIRR.
Is an STP better than investing the lump sum at once?
Not always. If the market rises while the money waits in the liquid fund, a lump sum on day one does better; if it falls, the STP buys more units at lower prices. The calculator shows both for the period you pick, which is a description of the past, not a guide to the future.
Why must both funds be from the same fund house?
An STP is a standing instruction to one fund house to switch between its own schemes. Moving money between two fund houses means a redemption and a new purchase.
What about tax?
Every transfer is a redemption from the first fund, so any gain on the units sold is taxed as a capital gain under the rules for that fund. The calculator leaves taxes and exit loads out. How the gain is taxed depends on your residence and facts, so confirm your own position with a tax adviser.
Worked out from each fund's daily NAV. Past performance does not indicate future returns.