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There are different kinds of STPs in which you can invest. These are Flexi STP, Fixed STP and Capital Appreciation STP.
STP is suited for those investors who want to invest their money in equity funds but do not want to take high-end risks. STP allows them to invest their lump sum first in a liquid or debt fund and then judiciously transfer it to a target equity fund systematically.
A Systematic Transfer Plan is helpful as it saves time and effort the investor would require to put in to transfer funds from one scheme to another. It helps you skip the extra steps required to reallocate funds and helps you protect at least a part of your investment.