How long should be the STP? | Value Research The main reason why you should spread your investments over a period is to ensure that you don't commit the money at a market peak
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How long should be the STP?

The main reason why you should spread your investments over a period is to ensure that you don't commit the money at a market peak

I have a large amount - a few lakhs. I have dumped it all into a liquid fund. How long should I invest it via STP into equity fund to gain maximum benefit - six months or 12 months or more? I don't want to be stuck too long in a liquid fund. At the same time I don t want to enter equity fund too fast.
- Anish

The main reason why you should spread your investment over a period is to ensure that you don't invest all the money at a market peak. This can be achieved if you spread your STP over a period of 18 to 36 months. Another rule you can apply is deploying the money in half the time it has taken you to accumulate it. Note, this doesn't apply to one-time bonanza, retirement proceeds, etc.


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