Usually, money is invested in a debt fund for the first time after which it can be transferred to an equity fund. This is very useful for investors who do not want to bear the additional burden of the market.
How do you set up STP with Groww?
With Groww you have to follow the 3 steps given below to set up STP / SWP:
Step 1: Invest in Source Fund
Source funds are a type of initial debt fund in which you have to invest.
After investing in the source fund, the money is periodically transferred to the liquid fund, which is also called the destinations fund. The destination fund should be from the same mutual fund company.
1. First of all you have to go to the Groww app/website and type ‘debt fund’ on mutual fand explorer. After this, you can choose many types of funds, in which there will be many options for you.
Step 2: Send Us a Request
1. Once you have generated the folio number (within 3 working days) of your fund, then you send us a request to firstname.lastname@example.org to start STP with the destination fund in which you want to invest. Can.
Ensure that the destination fund should belong to the same mutual fund company as a source fund.
For example: If you have chosen HDFC Short Term Fund as your source fund, then your destination fund should also be of HDFC like HDFC small-cap fund or HDFC growth opportunity fund.
2. You also have to tell the fixed amount of which you want to start STP. And the amount and frequency (monthly / weekly) will also have to be told as much money you want to transfer.
Step 3: Track Your Investments
Once your request is approved and STP is set, you can track it on your Groww dashboard within 3 working days. (As shown below.
Note: The minimum amount for the first STP instalment should be Rs 5000.
Your STP is set up.