How does STP work on FYERS, and what charges are applied on each transfer?

How Does STP Work on FYERS, and What Charges Are Applied on Each Transfer?

A Systematic Transfer Plan (STP) allows you to periodically transfer money from one mutual fund to another in a systematic manner. It is commonly used to gradually move investments from a low-risk fund to a higher-risk fund or to re-balance investments over time.

This article explains how STP works on FYERS and what charges are applied on each transfer.

How STP Works on FYERS

  • STPs are created using existing mutual fund holdings.
  • Each STP involves two transactions:
  • A redemption from the source mutual fund, and
  • A purchase into the target mutual fund.
  • STPs can be set up using:
  • A fixed transfer amount, or
  • A fixed number of units.
  • Transfers can be scheduled at Weekly, Monthly, or Yearly intervals.
  • Each transfer is processed independently as per the selected schedule.
  • Unit allotment in the target fund happens as per the respective mutual fund’s settlement cycle.

Charges Applied on Each STP Transfer

Depository (DP) Charges

  • A DP charge of ₹12.50 + 18% GST is applied on every STP transfer.
  • This charge is levied each time a transfer is executed, regardless of:
  • Transfer amount
  • Transfer frequency
  • Number of units transferred

Exit Load (If Applicable)

  • If the source mutual fund has an exit load, it is deducted during each redemption that happens as part of the STP.
  • Exit load rules depend on the mutual fund scheme and holding period.

Taxes

  • Each STP transfer is treated as a redemption from the source fund and may attract capital gains tax, depending on:
  • Type of fund (equity or debt)
  • Holding period
Since DP charges and exit load apply on every STP transfer, frequent STPs with smaller amounts may result in higher cumulative costs.

What If...

ScenarioOutcome
I set up an STP with weekly frequencyDP charges are applied on every weekly transfer.
I transfer a very small amountDP charges still apply for each executed transfer.
The source fund has an exit loadExit load is deducted on every STP transfer, if applicable.
I stop an STP midwayCharges apply only for transfers already executed.
I want to see charges deductedDP charges and exit load reflect in the transaction details.

Last updated: 09 Jan 2026