What is HDFC Flex Systematic Transfer Plan ?
HDFC Flex Systematic Transfer Plan is a facility wherein unit holder(s) of designated open-ended Scheme(s) of HDFC Mutual Fund can opt to transfer variable amount(s) linked to value of investments under HDFC Flex Systematic Transfer Plan on the date of transfer at pre-determined intervals from designated open-ended Scheme(s) of HDFC Mutual Fund (referred to as Transferor Scheme) to the growth option of designated open-ended Scheme(s) of HDFC Mutual Fund (referred to as Transferee Scheme*).

*Please refer to the HDFC Flex Systematic Transfer Plan Enrolment Form for terms and conditions before enrolment.

What are the salient features of HDFC Flex STP?
HDFC Mutual Fund offers HDFC Flex Systematic Transfer Plan with wide flexibility in order for the investor to plan his investments according to his financial goals. The following are the salient features:

• Presently, Minimum Amount of Transfer is
  
  

  Frequency of Flex STP	Daily	Weekly	Monthly	Quarterly
  Minimum Amount of Transfer (Rs.)	500	1000	1000	3000

  
  
• Frequency of transfer under Flex STP:
  • Daily
  • Weekly
  • Monthly
  • Quarterly
  
  
• Dates available for transfer
  
  

  Frequency of Flex STP	Daily	Weekly	Monthly	Quarterly
  Dates available	All business days	Every Friday *	1st, 5th, 10th,15th, 20th and 25th of every month *	1st, 5th, 10th,15th, 20th and 25th of every quarter*

* Next Business Day, in case the date of transfer falls on a non-Business Day.

• Minimum amount of unit holder’s balance or minimum amount of application at the time of Flex STP enrolment in the Transferor Scheme: Rs. 12,000.

• Minimum number of installments for enrolment under Daily Flex STP :
  • Minimum of 12 installments where instalment amount is less than Rs. 1,000/-.
  • Minimum of 6 installments where instalment amount is equal to or greater than Rs. 1,000/-.
  
  
• Minimum of 6 installments for enrolment under Weekly and Monthly Flex STP and 2 installments for Quarterly Flex STP.

• Eligible amount to be transferred:
  
  The amount to be transferred under HDFC Flex STP from Transferor Scheme to Transferee Scheme shall be calculated as follows: {fixed amount to be transferred per installment or the amount as determined by the following formula [(fixed amount to be transferred per installment X number of installments including the current installment) - market value of the investments through HDFC Flex STP in the Transferee Scheme on the date of transfer] whichever is higher}.
  
  In case the amount (as specified above) to be transferred is not available in the Transferor Scheme in the unit holder's account, the residual amount will be transferred to the Transferee Scheme and Flex STP will be closed.
  
  

How is it different from regular Systematic Transfer Plan ?
HDFC Mutual Fund offers HDFC Flex Systematic Transfer Plan with wide flexibility in order for the investor to plan his investments according to his financial goals. The following are the salient features:

• Under the Flex STP, unit holders will be eligible to transfer {fixed amount to be transferred per installment or the amount as determined by the following formula [(fixed amount to be transferred per installment X number of installments including the current installment) - market value of the investments through Flex STP in the Transferee Scheme on the date of transfer] whichever is higher} on the date of transfer.
• Invest more when the markets are down - Accelerated investments on the date of transfer in the chosen equity oriented fund when markets are down
• In a bullish market, continue with normal STP - Aids in keeping the power of compounding on your side in the long term.
• Automatic tactical asset allocation - Advantage of investing more at lower levels.
• Active management of the investment portfolio.

Illustration:

Please click here to view the illustration to understand the concept of HDFC Flex Systematic Transfer Plan.


Schemes eligible for this facility

HDFC Growth Fund	HDFC Equity Fund
HDFC Top 200 Fund	HDFC Capital Builder Fund
HDFC Index Fund	HDFC Balanced Fund
HDFC Prudence Fund	HDFC Premier Multi-Cap Fund
HDFC Core & Satellite Fund	HDFC High Interest Fund
HDFC Income Fund	HDFC Cash Management Fund
HDFC Short Term Plan	HDFC Floating Rate Income Fund
HDFC Gilt Fund	HDFC Liquid Fund
HDFC Long Term Equity Fund	HDFC Mid-Cap Opportunities Fund
HDFC Gold Fund**	HDFC Short Term Opportunities Fund
HDFC Infrastructure Fund	HDFC Medium Term Opportunities Fund
HDFC MF Monthly Income Plan (an open - ended income scheme. Monthly income is not assured and is subject to availability of distributable surplus.) ** an open-ended fund of funds scheme investing in HDFC Gold Exchange Traded Fund

Note: The above list is subject to change from time to time.

Benefits of HDFC Flex Systematic Transfer Plan

• HDFC Flex Systematic Transfer Plan allows investors to take advantage of bearish phases in the market.
• At the same time, continue with regular STP and benefit from the power of compounding.
• Removes emotions from the decision making process.
• Initial investments in select debt/liquid funds enhance total returns.
• Take advantage of the market movements without hassles.
• Investments in schemes with a long term track record.

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