Making
use of available options to maximize wealth creation is definitely a wise thing
to do. A lot of Indian Mutual Funds offer facilities called Systematic Transfer
Plan (STP), which basically removes the hassle of the Investor reaching out the
Fund-House / Registrars like CAMS to submit transaction requests.
This
facility offers the convenience where the Investor can opt to Switch a fixed
amount at regular intervals to designated open ended schemes. This basically
requires a One Time Instruction to CAMS and then you simply sit and relax. We
will take care of setting this up and ensure your transaction is processed
automatically on the designated dates.
This
facility is useful for investors who wish to use their funds very optimally.
For example, an investor may keep Funds in a liquid scheme and opt to switch to
an Equity Oriented Scheme every month on a predefined date. This also enables
the Rupee Cost Averaging, similar to what a Systematic Investment Plans (SIPs)
could offer.
Normally,
financial experts and planners suggest that the bulk income, year end bonus etc
could be parked in Liquid / Cash Funds and set up an STP to periodically switch
into Equity Funds, to gain maximum advantage. While your Bulk investment in
Liquid / Cash Fund generate better returns, the Rupee Cost Averaging in the
Equity Funds, could give you enhanced returns, depending on market conditions.
CAMS
has wonderful capabilities to handle such instructions from Investors could
simply fill and submit the STP registration form to any one of the CAMS CSCs to
enroll for the powerful facility.
What are you hesitant about? Go
ahead and start setting your goals and STP account too..
