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


SIP vs STP vs SWP If you invest in the stock market, then you must have heard about SIP SWP and STP at some point or the other. These three are investment options. Now which of these three options is the best and what is the difference between them. Today we will answer this question in this article.

Business Desk, New Delhi. Currently people 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 Plan (SIP), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP) at some point or the 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 of these three options will be best for you.

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

Experts also believe that doing SIP in Mutual Fund is a very good 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 saving. In SWP, you have to withdraw some part of your savings every month.


According to experts, 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.

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

Understand it like this that a 60-year-old investor transfers his equity fund to debt under the STP strategy amid the fluctuations in the market. At the same time, 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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