SIP vs STP vs SWP: If you invest in the stock market, then you must have heard about SIP SWP and STP at some time or the other. These three are investment options. Now which of these three options is the best and what is the difference between them. Today we will answer this question in this article.
SIP vs STP vs SWP: Currently, people adopt many methods to invest in the stock market. There are many investment options available in the market. Everyone wants to get maximum returns from wherever they invest. If you also invest in the stock market, then you must have heard about Systematic Investment Plan ( SIP ), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP) at some time or the other. These three are strategies to be adopted for investment, through which you can get higher returns.
Today we will tell you about these three strategies so that you can know which of these three options will be best for you.
Systematic Investment Plan (SIP)
Systematic Investment Plan (SIP) is quite popular among people. Investment has to be made every month in this. Its special feature is that in this you can invest in Mutual Fund along with shares. Through SIP, you can create a huge fund by making long term investments.
Experts also believe that doing SIP in mutual funds is a very good option.
Systematic Withdrawal Plan (SWP)
- Systematic Withdrawal Plan (SWP) is a strategy adopted for withdrawal of investment. With its help, you can save money along with tax saving. In SWP, you have to withdraw a part of your savings every month.
- According to experts, SW strategy should be adopted to withdraw money from mutual funds after retirement. With its help, you can save tax and withdraw money as per your need.
Systematic Transfer Plan (STP)
- There are fluctuations in the stock market. In such a situation, Systematic Transfer Plan (STP) helps a lot in giving returns amid the fluctuations of the market. In this, funds have to be transferred according to the risk.
- Understand it this way that a 60-year-old investor transfers his equity fund to debt under the STP strategy amid market fluctuations. Whereas, a young investor transfers his debt fund to equity. In this way, he can take advantage of the ongoing fluctuations in the stock market.
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