What is the difference between SIP, SWP and STP?
| Characteristics | SIP
| SWP | STP |
|---|
Full Form
| Systematic Investment Plan
| Systematic Withdrawal Plan
| Systematic Transfer Plan
|
Nature
| Fixed amount invested in a mutual fund at regular intervals over a period of time | Fixed amount withdrawn from a lumpsum mutual fund investment at regular intervals over a time period
| Fixed amount transferred from investments in one mutual fund scheme (same fund house) to another at regular intervals over a period of time
|
Tax
| Taxable
| Taxable
| Taxable
|
Who should Invest
| Investors looking for disciplined investing and long-term capital appreciation
| Investors who want high returns from regular payments, such as senior citizens who seek regular income for recurring expenses
| Investors who wish to move from one scheme to another scheme based on financial goals or risk appetite
|
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