Introduction

The economic progress of a country is, to a certain extent, linked with the growth of the capital market. Capital market growth depends on the savings of the nation. In India, notwithstanding a high rate of savings by the community, the capital market is not in a position to grow fast because the common man has not acquired the necessary know-how himself to select appropriate avenues of investment which will serve his needs. Therefore, the savings are mainly directed towards bank deposits / real estate / gold etc. If he is assured that there are organizations of repute which have necessary expertise to select appropriate avenues of investment where the yield is attractive enough, with utmost security of the capital invested, it would create a proper climate for diversion of a partof the savings which at present goes into sectors where there is either only capital appreciation but with little orno scope for regular periodical return on investment or no capital appreciation at all, but with a periodical small return on the investment. In these circumstances, there is enough scope for Mutual Funds to operate, which would not only assure a reasonable capital appreciation on his investment but also provide a regular dividend at periodical intervals with also a facility for easy encashment of the principal. That is why people are investing more and more in Mutual Fund Scheme in last 15 years.

FACILITIES AVAILABLE TO MUTUAL FUND INVESTORS IN INDIAN MARKET. a) Systematic Transfer Plan (STP):
Systematic Transfer Plan (STP) is one of the add-on facilities provided by mutual fund companies where an investor can transfer a fixed amount from one scheme to another at a predefined frequency. This facility is offered by most of the AMCs whereby investors are allowed to transact between two schemes of a same fund house and not two schemes of different fund houses. (STPs from one scheme to multiple schemes within the same fund house are also allowed). The feature is best suited for low risk appetite investors who want to invest lump sum in schemes and at the same time get advantage of different NAVs. Investors could allocate a portion (investing systematically) to schemes with higher growth potential (like equity) out of the lumpsum parked in low risk schemes like liquid. An STP enables investors to switch or transfer a fixed amount of money at regular intervals from one scheme to another. In effect, this is similar to a systematic investment plan, except that in a SIP, the investment flows from a bank account into the fund, while in STP it flows from one scheme to another. Effectively this process gives the benefits of Rupee cost averaging. Suitability: An investor can transfer a fixed amount periodically from a debt fund into an equity fund or vice versa. While many fund houses permit STPs from debt to equity funds, only a few allow the reverse. This facility caters to two segments of investor needs: 1) Investors wanting to time their exposure in the equity markets over a period of time instead of a point in time. Such investors can invest in debt schemes and choose a periodic transfer of

Introduction
The economic progress of a country is, to a certain extent, linked with the growth of the capital market. Capital market growth depends on the savings of the nation. In India, notwithstanding a high rate of savings by the community, the capital market is not in a position to grow fast because the common man has not acquired the necessary know-how himself to select appropriate avenues of investment which will serve his needs. Therefore, the savings are mainly directed towards bank deposits / real estate / gold etc. If he is assured that there are organizations of repute which have necessary expertise to select appropriate avenues of investment where the yield is attractive enough, with utmost security of the capital invested, it would create a proper climate for diversion of a partof the savings which at present goes into sectors where there is either only capital appreciation but with little orno scope for regular periodical return on investment or no capital appreciation at all, but with a periodical small return on the investment. In these circumstances, there is enough scope for Mutual Funds to operate, which would not only assure a reasonable capital appreciation on his investment but also provide a regular dividend at periodical intervals with also a facility for easy encashment of the principal. That is why people are investing more and more in Mutual Fund Scheme in last 15 years.

FACILITIES AVAILABLE TO MUTUAL FUND INVESTORS IN INDIAN MARKET. a) Systematic Transfer Plan (STP):
Systematic Transfer Plan (STP) is one of the add-on facilities provided by mutual fund companies where an investor can transfer a fixed amount from one scheme to another at a predefined frequency. This facility is offered by most of the AMCs whereby investors are allowed to transact between two schemes of a same fund house and not two schemes of different fund houses. (STPs from one scheme to multiple schemes within the same fund house are also allowed). The feature is best suited for low risk appetite investors who want to invest lump sum in schemes and at the same time get advantage of different NAVs. Investors could allocate a portion (investing systematically) to schemes with higher growth potential (like equity) out of the lumpsum parked in low risk schemes like liquid. An STP enables investors to switch or transfer a fixed amount of money at regular intervals from one scheme to another. In effect, this is similar to a systematic investment plan, except that in a SIP, the investment flows from a bank account into the fund, while in STP it flows from one scheme to another. Effectively this process gives the benefits of Rupee cost averaging.

Suitability: An investor can transfer a fixed amount periodically from a debt fund into an equity fund or vice versa. While many fund houses permit STPs from debt to equity funds, only a few allow the reverse. This facility caters to two segments of investor needs: 1) Investors wanting to time their exposure in the equity markets over a period of time instead of a point in time. Such investors can invest in debt schemes and choose a periodic transfer of

Introduction
The economic progress of a country is, to a certain extent, linked with the growth of the capital market. Capital market growth depends on the savings of the nation. In India, notwithstanding a high rate of savings by the community, the capital market is not in a position to grow fast because the common man has not acquired the necessary know-how himself to select appropriate avenues of investment which will serve his needs. Therefore, the savings are mainly directed towards bank deposits / real estate / gold etc. If he is assured that there are organizations of repute which have necessary expertise to select appropriate avenues of investment where the yield is attractive enough, with utmost security of the capital invested, it would create a proper climate for diversion of a partof the savings which at present goes into sectors where there is either only capital appreciation but with little orno scope for regular periodical return on investment or no capital appreciation at all, but with a periodical small return on the investment. In these circumstances, there is enough scope for Mutual Funds to operate, which would not only assure a reasonable capital appreciation on his investment but also provide a regular dividend at periodical intervals with also a facility for easy encashment of the principal. That is why people are investing more and more in Mutual Fund Scheme in last 15 years.

FACILITIES AVAILABLE TO MUTUAL FUND INVESTORS IN INDIAN MARKET. a) Systematic Transfer Plan (STP):
Systematic Transfer Plan (STP) is one of the add-on facilities provided by mutual fund companies where an investor can transfer a fixed amount from one scheme to another at a predefined frequency. This facility is offered by most of the AMCs whereby investors are allowed to transact between two schemes of a same fund house and not two schemes of different fund houses. (STPs from one scheme to multiple schemes within the same fund house are also allowed). The feature is best suited for low risk appetite investors who want to invest lump sum in schemes and at the same time get advantage of different NAVs. Investors could allocate a portion (investing systematically) to schemes with higher growth potential (like equity) out of the lumpsum parked in low risk schemes like liquid. An STP enables investors to switch or transfer a fixed amount of money at regular intervals from one scheme to another. In effect, this is similar to a systematic investment plan, except that in a

SIP, the investment flows from a bank account into the fund, while in STP it flows from one scheme to another. Effectively this process gives the benefits of Rupee cost averaging. Suitability: An investor can transfer a fixed amount periodically from a debt fund into an equity fund or vice versa. While many fund houses permit STPs from debt to equity funds, only a few allow the reverse. This facility caters to two segments of investor needs: 1) Investors wanting to time their exposure in the equity markets over a period of time instead of a point in time. Such investors can invest in debt schemes and choose a periodic transfer of