SIP Vs STP Vs SWP Explained: Which Strategy Should Mutual Fund Investors Use?

SIP, STP and SWP are three important strategies every mutual fund investor should understand. Prableen Bajpai, Founder, FinFix®️ Research & Analytics, explains how each works and when investors may need them. SIP is an accumulation tool that helps investors invest regularly from their income. STP is a transfer strategy used to move money from one mutual fund scheme to another, either from lower-risk to higher-risk assets or the reverse as retirement approaches. SWP is a withdrawal tool designed to create regular cash flow from an accumulated corpus. Understanding these three strategies can help investors manage their money through different stages of their investment journey.