Systematic Transfer Plan (STP)
STP refers to Systematic Transfer Plan where in an investor invests a lump sum amount in one scheme and regularly transfers (i.e. switches) a pre-defined amount into another scheme. Every month on a specified date an amount you choose is transfered from one mutual fund scheme to another of your choice.
Currently, Fixed Systematic Transfer Plan (FSTP) - Monthly Interval and Capital Appreciation Systematic Transfer Plan (CASTP) - Monthly Interval facility is available to the Unit holders on 1st, 5th, 10th, 15th, 20th and 25th of a month and FSTP - Quarterly Interval and CASTP - Quarterly Interval facility is available to the Unit holders on 1st, 5th, 10th, 15th, 20th and 25th of the first month of each quarter.
The Entry Load Structure for the transferee schemes - HDFC Growth Fund, HDFC Equity Fund, HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund, HDFC Premier Multi-Cap Fund, HDFC Balanced Fund, HDFC Prudence Fund, HDFC Long Term Advantage Fund and HDFC TaxSaver will be : NIL
The Exit Load Structure is as follows:
For Transferee Schemes : HDFC Long Term Advantage Fund and HDFC TaxSaver - Nil
For Transferee Schemes : HDFC Growth Fund, HDFC Equity Fund, HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund, HDFC Premier Multi-Cap Fund, HDFC Balanced Fund and HDFC Prudence Fund.
In respect of each investment through STP less than Rs. 5 crore in value, an Exit Load of 1.25% is payable if units are redeemed / switched-out on or before 2 years from the date of allotment. In respect of each investment through STP equal to or greater than Rs. 5 crore in value, no Exit Load is payable.
As per addendum dated 17th February 2009 HDFC Mutual Fund has decided to revise the load structure for investments through Systematic Transfer Plan (STP) from the Transferor Schemes (all Schemes offering STP facility) to the following Transferee Schemes: HDFC Multiple Yield Fund, HDFC Multiple Yield Fund - Plan 2005, HDFC Income Fund, HDFC High Interest Fund, HDFC Short Term Plan, HDFC Cash Management Fund, HDFC MF Monthly Income Plan, HDFC Gilt Fund, HDFC Floating Rate Income Fund, HDFC Liquid Fund and HDFC Arbitrage Fund
Applications routed through any distributor / agent / broker:
The amount transferred under the STP from the Transferor Scheme to the Transferee Scheme will be effected by redeeming units of Transferor Scheme at applicable NAV, after payment of Exit Load, if any, and subscribing to the units of the Transferee Scheme at applicable NAV, without payment of any Entry Load, if any, as on the specified date of a month or a quarter. In case the date falls on a Non-Business Day or falls during a book closure period, the immediate next Business Day will be considered for the purpose of determining the applicability of NAV.
Applications not routed through any distributor / agent / broker (Direct Applications): Nil
The applicable Entry Load (% wise) originally waived will be levied in the Transferee Scheme if units are redeemed/ switched-out on or before expiration of two years from the date of transfer. Further, applicable Exit Load, if any, in the Transferee Scheme / Plan / Option as on the date of allotment of units will also be levied.
Thus, this facility offers the benefits similar to those of an SIP and is suitable for investors who intend to invest systematically and currently have funds for investments.
Please refer to the STP Enrolment Form for terms and conditions and list of schemes offering this facility before enrolment.
*Minimum amounts may differ for each Scheme.