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What is STP, what is SWP, mutual fund systematic plans — complete Hindi guide.
Published by The Retail Trader · AUG 18, 2026 · Features
What is STP, what is SWP, mutual fund systematic plans — complete Hindi guide.
STP = Systematic Transfer Plan. Making regular transfers from one fund to another. Usually from debt fund to equity fund.
Use case: Lump sum money, do not invest in equity at once – transfer slowly through STP.
SWP = Systematic Withdrawal Plan. Taking regular withdrawal from mutual fund. For monthly income.
Use case: Need monthly income after retirement – keep withdrawing money from SWP regularly.
Keep these five points in mind:
• Lump sum: ₹12 lakh in debt fund
• STP: Transfer ₹1 lakh to equity fund every month
• Duration: 12 months
• Benefit: Getting interest in Debt fund + rupee cost averaging in Equity
Keep these five points in mind:
• Corpus: ₹50 lakh in equity fund
• SWP: ₹25,000 withdrawal every month
• Duration: ~15-20 years (depending on returns)
• Benefit: Regular income + remaining corpus grows
Keep these four points in mind:
• Direction — STP: Fund A → Fund B, SWP: Fund → Bank, SIP: Bank → Fund
• Purpose — STP: Deploy lump sum, SWP: Regular income, SIP: Regular investment
• Source — STP: Debt fund, SWP: Equity fund, SIP: Bank account
• Best for — STP: Lump sum investors, SWP: Retirement income, SIP: Salaried investors
Keep these three points in mind:
• Fixed STP — Fixed amount transfer
• Capital STP — Only gains are transferred, principal stays
• Flexi STP — Amount changes according to market level
If you take SWP equity mutual fund then:
• LTCG (>1 year): 12.5% above ₹1.25 lakh
• STCG (<1 year): 20%
Example:
• Monthly withdrawal: ₹25,000
• Yearly: ₹3,00,000
• LTCG tax (above ₹1.25L): ₹1,75,000 × 12.5% = ₹21,875
• Effective tax rate: ~7%
Keep these points in mind:
• 📌 STP & SWP
• STP (SYSTEMATIC TRANSFER PLAN):
• 📊 Debt fund → Equity fund
• 📊 Deploying lump sum slowly
• 📊 Rupee cost averaging benefit
• SWP (SYSTEMATIC WITHDRAWAL PLAN):
• 📊 Fund → Regular income
• 📊 Monthly income after retirement
• 📊 Tax efficient (LTCG 12.5%)
• TYPES:
• 📊 Fixed STP — Fixed amount
• 📊 Capital STP — Only gains transfer
• 📊 Flexi STP — Market-dependent amount
• STP vs SWP vs SIP:
• 📊 STP — Deploy lump sum
• 📊 SWP — Withdraw regularly
• 📊 SIP — Invest regularly
• BEST USE:
• 📊 STP — ₹12L lump sum, ₹1L/month in equity
• 📊 SWP — ₹50L corpus, ₹25K/month income
Keep these points in mind:
• Mutual Fund Types | SIP vs Lump Sum | Retirement Planning
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.