Can you explain few points about STP

One advice needed. If I wish to park some money and do regular STP in MF, then what is that fund known as? Is it liquid fund? Also all MFs are having liquid funds with there AMC? Also do I gain some interest on it and is it taxable? Also can you let me know by example which companies are having liquid fund and there fund name?

Aug 20, 2017 by Harshu Singh, | Mutual Fund

Yes, if you wish to park your investments for doing STP to equity or balanced funds, it should be in liquid funds or ultra-short term funds.

All AMCs have liquid fund/ ultra-short term funds in their product basket.

Yes, you can expect return of around 6-7% (higher than your savings bank account or short term fixed deposits) from liquid fund/ ultra-short term funds. The short term gains are added to your income and taxed according to your income tax slab.

You can see the list of liquid funds here – https://www.advisorkhoj.com/mutual-funds... And the ultra-short term funds here https://www.advisorkhoj.com/mutual-funds...

You can see some examples of liquid funds/ ultra-short term funds and the equity / balanced funds of the same AMC for your reference –

https://www.advisorkhoj.com/post-your-queries...

Hope you find the answers helpful to you.

Thanks for writing to Advisorkhoj.

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