Sometimes you may have a certain lumpsum amount that you want to invest in equities. But you want to invest the amount in small tranches over a period of time. You can do this by parking the money in a liquid mutual fund and opting for a systematic transfer plan (STP). Under STP, you can give instructions to the AMC to redeem a specified amount/units from the liquid fund scheme and invest it in another scheme (for example, an equity scheme) at regular intervals (say, every month).\r\rFor example, let’s assume an investor has a lumpsum amount of Rs 1,20,000. He can invest it in a liquid mutual fund scheme, and then opt for an STP from the liquid scheme to an equity scheme, wherein Rs 10,000 will be redeemed from the liquid scheme every month and invested in the equity scheme through an SIP.