🔄 Enhanced STP Calculator
Plan systematic transfer from debt to equity funds with comprehensive tax analysis and risk assessment
Risk Assessment
Market Risk:
Medium
Transfer Duration:
Medium Term
Recommended:
Suitable
Final Portfolio Value
₹12.5 L
After 24 months
Debt Balance
₹7.2 L
Equity Balance
₹5.3 L
Total Transferred:
₹6.0 L
Tax Implications:
₹8,500
Net Gain:
₹2.5 L
Effective Return:
11.2% p.a.
Portfolio Growth Over Time
| Month | Debt Balance | Equity Balance | Total Value | Growth |
|---|
Transfer Schedule
STP vs Lump Sum Comparison
STP Strategy:
₹12.5 L
Lump Sum in Equity:
₹12.8 L
Lump Sum in Debt:
₹11.5 L
STP Advantage:
+₹1.0 L
STP Benefits
✓
Rupee cost averaging reduces market timing risk
✓
Gradual equity exposure as markets stabilize
✓
Debt fund provides stability during volatile periods
✓
Tax-efficient compared to frequent manual transfers
Detailed Tax Analysis
Debt Fund Taxation:
- LTCG: 20% with indexation benefit (after 3 years)
- STCG: As per income tax slab (within 3 years)
Equity Fund Taxation:
- LTCG: 10% above ₹1 lakh exemption (after 1 year)
- STCG: 15% (within 1 year)
STP Tax Impact:
- STP transfers are not considered redemptions
- No tax implication during transfer process
- Tax applies only on final redemption
Estimated Final Tax: ₹8,500
Based on equity gains above ₹1L exemption
Risk Factors & Recommendations
Market Risk:
Equity markets can be volatile. STP helps average out market fluctuations over time.
Interest Rate Risk:
Debt fund returns may vary with interest rate changes. Consider duration risk.
Recommendations:
- Ideal STP duration: 12-36 months
- Review and adjust transfer amount quarterly
- Consider market conditions before starting STP
- Monitor fund performance regularly