Difference Between SIP and STP

What is a SIP (Systematic Investment Plan)?

SIP, investors can deposit a fixed amount at regular intervals – weekly, monthly, quarterly with small amount Rs.500

Investment in mutual funds through SIP helps investors to maintain  discipline in their savings with regular intervals 

What is a STP (Systematic Transfer Plan)?

STP Systematic Transfer Plan is where an investor can transfer money from a mutual fund scheme to another scheme of the same mutual fund house.

In STP, investors invest a lump sum in a fund (usually a debt fund) and then transfer a fixed amount regularly to an equity fund. 

In STP, Capital appreciation for excess idle money lying in the bank account

In SIP Long term capital appreciation

In SIP No tax applies to investing.