Can you help me in understanding a capital appreciation STP

We have already replied to you on a similar query on this topic. Please check here https://www.advisorkhoj.com/post-your-queries...

The point you are missing with regards to mutual fund returns is that, returns less than one year is always shown in absolute basis and returns of 1 year and above is always shown on annualized basis.

In this case, the returns of 0.30%, 1.80% and 4.00% for 1 month, 3 month and 6 months periods respectively, are in absolute basis. For example - the fund has given 4% absolute return in 6 month. Suppose you had invested Rs.100,000 Lakh, 6 months ago, the value of the fund is now 104,000.

However, returns of 1 year and above are always in annualized basis. If you notice the footer of the result shown in Moneycontrol website, you will see the remark 'return over 1 year are annualised'

With regards to monthly capital appreciation STP, the AMC will check the amount at monthly interval and transfer the appreciation amount to equity fund. For example, SBI Ultra Short Term Fund has given 0.30% absolute return in one month and you had invested Rs.100,000 a month back. In this case, the AMC will transfer the monthly appreciation of Rs. 300 to the equity fund chosen by you. Again after one month, the AMC will check the appreciation amount and transfer to the equity fund. This will continue till such time you remain invested in the fund.

Hope this clarifies your doubt. Thanks for writing to us : )