Investment Option: What are SIP, SWP, and STP, and which is more beneficial..


People currently adopt many methods to invest in the stock market. There are many investment options available in the market as well. Everyone wants to get maximum returns from wherever they invest.


If you also invest in the stock market, then you must have heard about Systematic Investment Plans (SIP), Systematic Withdrawal Plans (SWP), and Systematic Transfer Plans (STP) at some point or other. These three are strategies to be adopted for investment, through which you can get more returns.

Today we tell you about these three strategies so that you can know which will be best for you.

Systematic Investment Plan (SIP)
Systematic Investment Plan (SIP) is quite popular among the people. Investment has to be made in it every month. Its special feature is that in this you can also invest in Mutual Funds along with shares. Through SIP, you can create a big fund by making long-term investments.

Experts also believe that doing SIP in mutual funds is a perfect option.

Systematic Withdrawal Plan (SWP)
Systematic Withdrawal Plan (SWP) is a strategy adopted for withdrawal, not investment. With its help, you can save money along with tax savings. In SWP, you have to withdraw some part of your savings every month.

According to experts, the SW strategy should be adopted to withdraw money from mutual funds after retirement. With its help, you can save tax and withdraw money as per your need.

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Systematic Transfer Plan (STP)
There are fluctuations in the stock market. In such a situation, a Systematic Transfer Plan (STP) helps a lot in giving returns amid market fluctuations. In this, the fund has to be transferred according to the risk.


Understand it this way a 60-year-old investor transfers his equity fund to debt under the STP strategy amid market fluctuations. Whereas, a young investor transfers his debt fund to equity. In this way, he can take advantage of the ongoing fluctuations in the stock market.

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