1. What is STP to SIP Conversion?

STP (Systematic Transfer Plan) to SIP (Systematic Investment Plan) conversion calculates the future value of a lump sum investment (STP) when systematically transferred into periodic investments (SIP) at a given rate of return over a specific period.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( STP\ Amount \) — Initial lump sum amount in ringgit
• \( r \) — Rate of return per period (as decimal)
• \( n \) — Number of periods (typically years)

Explanation: The formula calculates how much your initial STP amount would grow if invested at a constant rate over the given periods.

3. Importance of SIP Calculation

Details: Understanding the potential growth of your investments helps in financial planning and setting realistic investment goals.

4. Using the Calculator

Tips: Enter the STP amount in ringgit, the expected annual rate of return (as percentage), and the investment period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between STP and SIP?
A: STP is a lump sum transfer between funds, while SIP is regular periodic investments. This calculator shows how a lump sum could grow if systematically invested.

Q2: Is the rate of return guaranteed?
A: No, the rate is an assumption. Actual returns may vary based on market conditions.

Q3: How often is compounding applied?
A: The calculator assumes annual compounding. For more frequent compounding, adjust the rate and periods accordingly.

Q4: Are there taxes on these investments?
A: Tax implications vary by country and investment type. Consult a financial advisor for Malaysia-specific tax rules.

Q5: Can I use this for other currencies?
A: While the calculator shows RM, the formula works for any currency as long as all values are in the same currency.