We have rolled out an important feature on Invezta last week.
We have added functionality of Switch, STP & SWP. These are mode of transacting in mutual funds. To transact in any of the above mode you can click on Menu Bar on your dashboard and select Switch.
Let me explain you in detail about each of them.
Switch enables you to transfer money from one fund to another. You have an option to switch between two funds from same Asset Management Company (AMC) & same folio. For eg. If you have invested in Birla Sun Life frontline Equity Direct Growth, you can switch in any of available fund under Birla AMC.
Systematic Transfer Plan (STP)
This is similar to Switch with benefit of periodic transfers. If you switch from one fund to another it will be a one time transaction. What if you wanted to switch every month or quarter? STP is your answer. STP enables you to transfer money from one fund to another within same AMC in systematic (periodic) manner.
In the above example, investor has setup STP from ‘DSP BlackRock Micro Cap Fund Direct Growth’ to ‘DSP Income Opportunity Fund Direct Growth’ of INR 1000 (Amount) on 25th (Start Date) of every month (Frequency) for next 7 (Installments) months.
Systematic Withdrawal Plan (SWP)
This mode can be utilized if you wish to redeem your funds periodically. In Systematic Investment Plan (SIP), you invest in a fund periodically but in SWP you redeem your invested value. You can use SWP mode if you wish to sell your funds in periodic manner.
In above example, starting 7th September (Start Date) every month (Frequency) INR 1200 (Amount) will be redeemed from DSP BlackRock Liquidity Fund Direct Growth (From Scheme) for next 10 (Installments) months.
Please note that all transfers or withdrawals are subject to RTA processing.
Once you setup STP / SWP, you can Cancel / Stop / Pause them in Systematic Transaction screen under Transaction History screen.
I hope you shall find the above useful. While we are working on more features and upgrades, keep sending your love and feedback to us at firstname.lastname@example.org