I have started daily STP plan for my client, we do SIP in liquid fund & Transfer 1000 daily in equity is it right step for 10 years holding period, I feel instead of 12 NAV I will get almost 250 NAV for average?
Systematic investing is all about rupee cost averaging and the method you have chosen is probably the best way to maximise this averaging.
While the method is good, you must do back testing using our this calculator https://www.advisorkhoj.com/mutual-funds-research/mutual-fund-stp-investment-calculator
The above tools helps you to input lumpsum investment in various frequencies (one-time, yearly, half-yearly and quarterly) and then do STP to any fund again with various frequencies – like, daily, weekly, fortnightly, monthly and quarterly.
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