A common question people ask when investing in mutual funds is: Should I invest through SIP or use an STP? The answer depends on how you receive your money. Although both strategies involve investing in mutual funds over time, they serve different purposes. Understanding how they work will help you make smarter investment decisions. STP vs SIP at a Glance FeatureSIPSTPFull FormSystematic Investment PlanSystematic Transfer PlanBest ForMonthly incomeLump sum investmentInvestment SourceBank accountExisting mutual fundInitial Lump Sum RequiredNoYesInvestment StyleRegular investmentsGradual transfer from one fund to anotherMarket Timing RiskLowerLower than lump sum investingSuitable ForSalaried individualsInvestors with bonuses, inheritance or sale proceeds What…