Introducing Systematic Transfer Plans (STP) on Zerodha Coin
A Systematic Transfer Plan (STP) is a smart way to invest gradually. Instead of putting a large amount of money into mutual funds all at once, STP lets you automatically transfer a fixed amount at regular intervals from one fund to another.
STPs help when you want to move money from low-risk funds like liquid funds, to higher-risk funds, like equity funds.
It took us a while but we’re excited to introduce STP on Coin. However, our STP is much better than the regular STPs.
What makes Zerodha’s STP special?
Traditional STPs restrict you to funds within the same AMC. That means, you can’t use Axis liquid fund to invest in Zerodha LargeMid 250 index fund. With the Zerodha Coin STP however, you can use any fund from any AMC.
How Coin’s STP Works
- You choose your STP date
- At 10 AM on that date, the redemption process starts automatically
- Your UPI AutoPay mandate triggers
- Funds get distributed to your chosen schemes
Example of how you can use STP
Let’s say you had invested ₹10 lakhs in ICICI Liquid Fund because the markets are overvalued. Since the markets have corrected, you want to move to equities gradually. Previously, this would mean setting multiple reminders, tracking NAVs, and making manual transfers. With the new STP, you just have to set up the fund you want to transfer from and the fund you want to invest in, set it up once, and the system handles everything.
Setting up your STP
On the Coin App:
- Tap on Investments and select your mutual fund.
- Tap on More, then on STP, enter an STP name, and then confirm.
- View your invested amount and units.
- Enter the withdrawal amount.
- Choose a frequency and select a mandate (create one if needed).
- Select up to five target mutual funds.
- Tap on Done, enter transfer amounts, then tap on Create STP.
On the Coin Web Platform:
- Click on Dashboard, and then on Mutual Funds
- Select your source mutual fund
- Click on Options and then on Create STP
- Follow the remaining steps as shown in the Coin App instructions above
I have few below questions regarding the STP option available in Coin App:
1.When I am trying to setup an STP, it is asking for a bank mandate. If the fund will be transferred from one mutual fund to other then why there is need for bank mandate?
2.Will the mutual fund units will be redeemed and the fund will be credited to the bank account before re-investing in the other selected mutual fund?
3.If I transfer fund from one mutual fund to the other using STP option in Coin, will it attract tax (STGC/LTCG etc)?
4.Through STP, If the mutual fund unit is redeemed from first mutual fund (let say on 1st May), will it get transferred to the second mutual fund on the same say i.e., Will I get the 1st May NAV of second mutual fund?
What is the turnaround time to redeem and purchase? Can you add an example with clear timeline?
I tried it. There is a lot of delay from when the redemption is processed to the subsequent purchase. If redemption happens on day 1, the subsequent purchase happens only after day 4 a day after the money is credited to your bank account.
I tried using it. But there is a lot of delay. The redemption happens on day 1. The next order for the purchase happens only after 3 days, a day after the money is credited back to the bank account.
As far as I know and understand, no matter what you are doing, redemption or transfer, if units are being debited then it realizes the gain/loss.
Yah, that\’s what I was also thinking about.
Hi Team,
Eagerly waiting for transfer the existing NPS account into Zerodha coin NPS. Please get this feature ASAP as currently it’s for only new user. Thank you !
One more query regarding SGB:
I’m having some SGB bonds bought via HDFC net banking and having bonds in soft copy, How to convert the same into Demat form and move Zerodha Kite as I’m already holding some SGB bonds in Kite.
Response and proper support really appreciated!!!
It will be automatically added in kite.
Hi, can we do STP from one equity mutual fund to another equity mutual fund? Is it possible without auto mandate?
It\’s nice t possible only within the same fund house. Perhaps it\’s also not possible from regular to direct mf as per my experience
As mentioned, It is possible to transfer any funds of any amc. Small caveat- It must be in invested beforehand as small as 100/500 inr. Please check the video for same.
Can we create a STP from one mutual fund to an AMC mutual fund held in my portfolio?
Possible under the same fund house
Yes. STP is only for convenience in automating the process. Each transfer = redeem source fund units + purchase target fund units. Hence e it loands or taxes apply as per the respective funds and holding periods.
Shiv, request to validate before spreading wrong information. It is possible to any fund house as mentioned above and in video.
Possible under the same fund house.
Dnt know what zerodha is asking about web site …which is coming automatically in the reply
Shiv, request to validate before spreading wrong information. It is possible to any fund house as mentioned above and in video.
It\’s Possible under the same fund house.
Dnt know what zerodha is asking about web site …which is coming automatically in the reply
Thank you for explanation
What will be the recharges to switch between STPs
And how many times in a year or a month can we switch?
Dhan takes only ₹20 for as many lots of options we buy or sell (like promised by you but you increased a lot)
Hi Amol, there are no extra charges to use STP; there\’s no limit either on the number of times you can use it.
Why not you start switch within amc or switch from one amc to another amc funds?specially in passive funds investment help lots. Hope so shortly.
Hi, your feedback has been noted. We will check into the possibilities.
This is really a needed feature. Do we have something similar for investing in stocks?
What is i have pledged my debt mutual funds and want to create STP towards equity MF from it…?
Do i have to unpledged my units of debt or zerodha will do that automatically?
Hi, you will have to first unpledge the mutual funds before creating an STP. https://support.zerodha.com/category/console/portfolio/pledging/articles/how-do-i-unpledge-shares
How does this work in scenarios where the redemption period is 3 days? So will the STP get triggered only after the redemption has completed?
Hi
Kindly confirm when we switch funds from one to another using stp. Do we incur capital gain tax
Yes. STP is only for convenience in automating the process. Each transfer = redeem source fund units + purchase target fund units. Hence e it loands or taxes apply as per the respective funds and holding periods.
Wow.. This is revolutionary.
Please clarify on charges and taxation.
Also let\’s say in my source liquid fund if only half the units are free to redeem(as they have been purchased more than 15 days ago) and the other half has units if redeemed will be charged(since purchase period has not crossed 15 days), how does Coin know which units to redeem ?
Can we transfer SIP from Regular to Direct mutual fund as well?
Hi Rajdeep, we offer only direct mutual funds on Coin, so STPs can be set up only between direct funds.
Couple of questions:
1. At amc level the STP works on basis of amount
If \’X\’ scheme has a current value (CV) Rs.9000 and one opts for STP the amc calculates the units allotment for \’Y\’ based on the CV of \’X\’
If in zerodha redemption and purchase is happening of same day, there may be a difference either +tive or -tive. It\’ll not be of the exact amount.
Share a clarity on this
2. Is there secondary payment option? Like UPI netbanking to complete the transaction in case of mandate failure ?
Hi,
I have been using this service for two months. It was soft-launched in February 2025.
Redemption:
The redemption process is based on a fixed amount. For example, if you set it to redeem ₹5,000 from ELSS to small cap, on the redemption day, only ₹5,000 will be deducted. The amount does not depend on the NAV on that day. It will deduct the quantity that corresponds to ₹5,000, regardless of the NAV fluctuations. However, if the NAV changes, there may be minor variations, but I have mostly observed positive variations.
Purchase:
The purchase process is typically through a SIP (Systematic Investment Plan). The only requirement is that the funds you want to transfer must be invested beforehand. You can invest as little as ₹100 or ₹500. The funds must be part of your holdings in order to select that fund when activating the STP (Systematic Transfer Plan).
Mandate:
The deduction will be made from the same mandate you set up in Zerodha, which can be via UPI or net banking.
Is there any cost which will be deducted in the whole process of moving funds
What will be the tax treatment??
Can i Transfer my whole SIP into new SIP with different AMC. IF yes then i need support from your customer care.
The first thing that came to mind is the one I read all across the comments here. Last year I tried researching a lot on this to readjust my portfolio. Portfolio rebalancing is unfortunately treated by our taxation as capital gains. Whether short term capital gain or long term capital gain, unfortunately equity doesn\’t get the benefit unlike real estate where your reinvestment makes it tax free.
Is this also available for NRE accounts?
Hi Anish, STP is also available for NRE accounts.
What if I wanted to transfer all my funds from groww aapp to coin app
Hi Pritesh, we\’ve explained the transfer process here: https://support.zerodha.com/category/mutual-funds/transaction-and-reports/transactions-on-coin/moving-to-coin/articles/how-do-i-move-my-existing-mutual-fund-investments-to-coin
Is there any additional charges for that
Hi, there are no additional charges for using STP.
Can we do this on pledged mutual funds ? If not, can we have some units free for STP in the holdings and most of the part pledged ?
Hi Yogesh, STP works only for free units. They must not be pledged.
What are the Tax implications here? Gains on the redemption from liquid fund?
When switching between funds with locking period to one without, in such case the exit charges are applicable on the already existing funds.
Hi, STP works only for free units; they cannot be under the lockin period.
Thank you for introducing this feature. I have a question and it would be great if you can help clarify that. When I use STP on Zerodha Coin and move funds between one fund of an AMC to another fund of another AMC, will that transfer realize Capital Gains?
Noob question. But would appreciate the clarification.
What about taxes when moving between funds?
That\’s the worst part. we have to pay according to our slab
I would be capital gains tax right? Not slab.