Systematic Transfer Plan

A Systematic Transfer Plan (STP) is a disciplined way of shifting part of your current investments into other schemes which will help you diversifying your investments. A STP enables you to switch or transfer a fixed amount of money at regular intervals from your fixed income scheme investments to designated equity and balanced schemes. In effect this is similar to a systematic investment plan, except that in a SIP the investment flows from a bank account into the fund and here it flows from one scheme to another. Effectively this process gives you the benefits of Rupee cost averaging.

Key Features

In order to start the STP facility, the minimum account balance should be Rs.12,000.

  • The frequency can be Monthly or Quarterly.
  • There are two options available:
      1. Fixed amount: A fixed amount can be transferred either on the 15th or the last business day of every month/quarter to any Franklin Templeton open end equity or hybrid scheme3, subject to the terms of the scheme
      2. Capital Appreciation: The capital appreciation as on the last business day of the month/quarter can be transferred to any Franklin Templeton open end equity or hybrid scheme3, subject to the terms of the scheme. This option will be available only under the growth plans of the above mentioned schemes.
  • Minimum Amount: Under the Fixed amount option, the minimum transfer will be Rs.1,000
  • Minimum withdrawal: Under the Fixed amount option, the minimum withdrawal will be Rs.1,000
  • This facility is not available for investments under lock-in period.

Dividend Transfer Plan

Ever wanted to invest in equities, but at the same time maintain majority of your investments in fixed income schemes? This facility offers you a solution wherein you can invest the dividends received from your income/liquid schemes into equity and hybrid schemes.

Key Features

  • Dividends declared will be automatically invested into selected Open-ended Equity or Hybrid schemes.
  • To avail the DTP facility4 the minimum account balance should of Rs. 25,000/-
  • The frequency of transfer will be dependent on the dividends declared by the plan in which the investment has been made.
  • The amount, to the extent of the distribution, will be automatically invested on the ex-dividend date into the AMC open end equity or hybrid scheme selected by the investor at the NAV of that scheme and equivalent units will be allotted, subject to the terms of the scheme:
    For example: If the dividend record day is a Friday and the ex-dividend day is Tuesday, the investor will be allotted units at NAV of same day i.e. Tuesday in Equity/Hybrid scheme. In case of non-business day in Equity/Hybrid scheme, the NAV of immediate next business day will be allotted.
  • This facility cannot be availed under Daily Dividend Plans and Weekly Dividend Plans of the above schemes.

If you have any query or questions regarding this service, please do contact us. We will be happy to help you.