1. What is STP to SIP Conversion?

STP (Systematic Transfer Plan) to SIP (Systematic Investment Plan) conversion calculates the monthly investment amount when spreading a lump sum transfer over multiple periods. This helps in systematic withdrawal or transfer of funds.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• STP Amount — The total amount to be transferred (in dollars)
• Number of Periods — The duration over which to spread the transfer (in months)

Explanation: This calculation divides your total transfer amount into equal monthly installments.

3. Importance of SIP Planning

Details: Proper SIP planning ensures disciplined investing, helps in rupee cost averaging, and makes large investments more manageable by breaking them into smaller amounts.

4. Using the Calculator

Tips: Enter the total STP amount in dollars and the number of months over which you want to spread the investment. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between STP and SIP?
A: SIP is regular investment from your bank account into a fund, while STP is transfer from one fund to another (either lump sum or systematic).

Q2: Can I change the SIP amount later?
A: Yes, most funds allow you to increase, decrease, pause or stop your SIPs as needed.

Q3: Is there any tax implication for STP?
A: Yes, each STP installment may trigger capital gains tax if transferring from a growth option.

Q4: What's the ideal SIP duration?
A: For best results, maintain SIPs for at least 5-7 years to benefit from market cycles.

Q5: Can I set up multiple SIPs?
A: Yes, you can have multiple SIPs in the same or different funds as per your investment goals.