What are SIP, SWP and STP?

 

SIP-In Mutual fund,Investor can do investment on both ways by lump sum or Installment basis.

Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums. Investor can select the frequency of investment is usually weekly, monthly or quarterly.

SIP is way of Investment in Mutual fund.

STP-Systematic Transfer Plan (STP)- An STP is a plan that allows investors to give consent to a mutual fund to periodically transfer a certain amount / switch (redeem) certain units from one scheme and invest in another scheme of the same mutual fund house.

 

SWP-Systematic Withdrawal Plan or SWP refers to this scheme that allows the investor to withdraw from his mutual fund scheme every month on an already set date.