In the case of mutual funds, a STP refers to transfer of money from one scheme to another at pre-determined intervals.
Usually, STPs are undertaken from liquid schemes into equity schemes.
For instance, Rs. 48000/- is invested into a liquid scheme and Rs. 4000/- is transferred into an equity scheme every month for 12 months.
The scheme to which the money is transferred is known as the Transferee Scheme and the other is known as the Transferor Scheme. For instance, if money is transferred from a Liquid Scheme to an Equity scheme, the latter is the transferee scheme.
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