Systematic Transfer Plan HDFC

What is HDFC Systematic Transfer Plan?

The HDFC Systematic Transfer Plan allows the investor to transfer investments from a source fund to a target fund. A source fund is defined as the fund which is used as the treasury to fund the target fund, while a target fund is the receiver of the redirected capital. The following table lists the HDFC mutual funds which can be used as Source and target funds.

Updated as of 07 September 2026

Types of STP Offered by HDFC

HDFC offers investors various forms of STP that they can set up and redirect their money from one fund to another for profit maximisation.

Fixed STP

Fixed STP offered by HDFC allows the investor to transfer a predetermined amount from the source fund into the target fund on a pre-decided date. The amount transferred from one open-ended fund to another remains fixed despite market fluctuations.

Key Features of Fixed STP

• NFO Availability: FSTP is the only STP which is allowed to transfer funds into a scheme during its NFO period
• Taxation and load: Each transfer is treated as a redemption from the source fund and a fresh purchase in the target fund, which triggers capital gains tax and exit loads.

The following table lists the minimum amount and minimum number of instalments required to set up the STP.

Capital Appreciation STP

The Capital Appreciation Systematic transfer plan allows an investor to only transfer the gains accumulated in the target fund into the source fund. This means that the returns earned from the target mutual fund are invested in the target mutual fund while the principal amount remains the same and protected.

Key Features of CASTP

• Transferable amount: Instead of a fixed amount, the plan transfers the entire capital generated in the source fund to the target fund.
• Minimum requirements: The minimum capital appreciation that should accumulate in the source fund on the date of transfer should be ₹300 for monthly transfers and ₹1000 for quarterly transfers.
• Frequency: The frequency offered by CASTP is limited to monthly and quarterly transfers and does not provide the facility of a daily transfer.
• Monthly instalments: For Monthly transfers, a minimum of 6 instalments is mandatory, while for quarterly transfers, a minimum of 2 instalments is mandatory.

Note that CASTP is not available for the HDFC ELSS Tax Saver and HDFC Long Term Advantage Fund.

Flex STP

HDFC Flex Systematic Transfer Plan allows investors to transfer a variable amount of money from their target fund to their source fund, depending on the market conditions during the time of transfer. It is designed to invest more when the markets are down and invest less when the markets go up.

How does it work:

Transferable amount: The transferable amount is generally determined by a mathematical formula.

Flex STP Amount = (Fixed amount per instalment * Number of instalments completed, including the current one) - Market value of the instalments already processed in the target scheme

The formula thus works differently in different market situations.

• Bear market: During a low market, the formula triggers a higher transfer amount to let you buy more units of the target mutual fund at low market prices.
• Bull Markets: During a high-performing market, the formula triggers the fixed amount to be transferred, letting you profit from the power of compounding on your source mutual fund.

Note that the scheme you invest in should be a growth scheme

Swing STP

The HDFC Swing STP allows the investor to transfer a variable amount of capital from the source fund to the target fund to achieve a specific target market value in their target fund, after which the excess amount is swung back to the source fund.

How does it work:

• Transferable amount: From the second instalment onwards, the transferable amount for the plan is decided by the following formula:

(First instalment amount × Number of instalments including the current one)-Market Value of existing Swing STP investments in the target scheme

• Reverse Transfer: Unique to this plan, if your target fund exceeds its goal due to strong market performance, the excess is transferred to your source fund.

Let's understand this with an example.

• You have a debt fund of ₹50,000, and you wish to redirect it into an equity fund.
• You set up a monthly swing STP with a fixed investment of ₹ 2000 for 12 months.
• Thus, the target market value of your fund keeps increasing by 2000 every month.
• In case the equity fund underperforms, the plan will transfer more than ₹2000 to catch up to the target market value.
• If the equity fund performs well, the plan will transfer less than ₹2000 to reach the goal.
• If the equity fund performs very well and grows beyond the target value, the excess amount is transferred back to the source fund.

How to Set Up an HDFC STP?

Follow these steps to set up an HDFC STP. Ensure that the operational requirements are met when setting it up.

Operational Requirements to Set Up an HDFC STP

• Minimum account balance of ₹12000 at the time of enrolment
• Minimum number of instalments according to the frequency is
• Daily: 12 if the amount is less than ₹1000, 6 if the amount is more than ₹1000
• Monthly: 6 instalments
• Quarterly: 2 instalments
• Taxation and exit loads: Each transaction is considered as a redemption from the source fund and a fresh purchase in the target fund, which in turn can trigger exit loads and capital gain tax.
• Plans registered for a minor automatically terminate once the minor reaches 18 years of age.

Setting Up HDFC STP

• Choose Scheme: Select your source and target funds for the transfer
• Choose the plan: Choose between fixed, capital appreciation, flexi or swing STP
• Define parameters
• Choose the frequency
• Choose the date of transfer
• Set the amount of transfer
• Submit the enrollment form offline at any HDFC mutual fund branch or online through the HDFC mutual fund portal.

Conclusion

Thus, HDFC STP gives the investors a large selection of plans to choose from in accordance with their financial goals and availability of funds. It is an easy way to redirect money from one asset and grow a corpus through regular investment without the need to start a new SIP for investment.