Good news! Investors can now avail the facility of STP ( Systematic Transfer Plan) and Systematic withdrawal plan ( SWP) on Groww. This blog covers a detailed explanation on how to do this on Groww within minutes. Read On!

 How To Start STP On Groww?

While you must be aware by now what a SIP stands for, a STP is still a lesser-known feature of mutual funds, yet something every investor must know of. You might have guessed that there is some kind of transfer involved, but what is being transferred? As the name suggests, STP is a tool for the systematic transfer of money between mutual funds. STP allows you to transfer your investments from one mutual fund to another within the same AMC. 

Imagine that you have a huge sum of money to invest. Doing a lump sum investment when the market is volatile may not be a wise move as you are exposed to risk. But to let your money lie idle in a savings bank is equally not acceptable for a wise investor. This is where an STP can be put to use. 

You can mitigate the risk of a lump sum investment by investing only a portion of your money in a high-risk-high-return scheme at a time. The remaining amount could be put in a safer investment such as debt funds. The latter will draw more returns than your money lying idle in a savings account. Now you will have made two investments in two different funds.  Here’s where you can start an STP to gradually remove more of your money to the fund which allows greater appreciation of wealth, meanwhile cushioning your capital against volatility blows. 

Now that you know how STP can come in handy to you, here is how you can do so on Groww within minutes. 

Step 1: Log on the Groww platform and click on “ Investments” on your dashboard. 

Step 2: Select the source fund from which you want to transfer your money to the destination fund. You can do this by clicking on the three dots and selecting ” Start STP” from the drop-down list. Remember, the destination fund must belong to the same asset management company as the source fund and hence you need to choose wisely.

STP SWP Step 1

Step 3: Once you have selected the source fund ( from where your funds will be transferred), the next step is to select the destination fund.

STP SWP 3

Step 4: Based on the monthly transfer amount you enter, the number of installments is calculated, after removing units from lock-in from the source fund. You can select the date from which you want the STP to start. Once you are sure of the source and destination fund, click on ” Confirm STP ” to proceed and your process is completed. You can go back to the dashboard to manage multiple STPs.

STP SWP 4

How To Start SWP On Groww?

A systematic withdrawal plan allows you to methodically withdraw money ( redeemed units) from your investment corpus. Similar to SIP, in an SWP, the amount and the time interval of withdrawal is decided by the investor.  The predetermined amount is then automatically debited to the chosen account of the investor. Simply put, If SIP is about investment, SWP lets you redeem at your preferred speed. 

For retirees, this will provide a steady income to meet their needs, without worrying about using up all of their money. For salaried individuals, this might be the extra push needed to make ends meet.  Let us see how you can start a SWP on Groww. The process is largely similar to that of STP. 

Step 1: Log on the Groww platform and click on “ Investments” on your dashboard. 

Step 2: From the list of your funds, select the mutual fund you want to withdraw money from, the units of this fund will be redeemed and the money will be transferred to your linked bank account. After you zero in on the fund, click on the “3 dots” under the Action tab and select ” Start SWP”

Step 3. Based on the total amount available in the fund, select the monthly withdrawal amount. Based on this amount, you will be told how many times you can withdraw from your fund. You can then make changes in the monthly withdrawal amount. Select the monthly billing date and click on ” Confirm SWP”.

SWP on Groww

This will initiate your SWP.  You can easily see and manage your active STPs and SWPs on your dashboard and take action accordingly.

SWP final step on Groww

Happy Investing!