The turbo systematic transfer plan (STP) launched by Aditya Birla Sun Life AMC Ltd. allows unitholders to choose to transfer varied amounts from a source scheme to a target scheme at predetermined intervals.

In Turbo STP, the outputs from an internal model that aids in determining market valuation will be used to determine the variable or actual transfer amount to the target scheme.

The model examines technical and fundamental characteristics such as valuation, trend, and volatility ratios (EVM) to arrive at an equity value multiplier. Based on the previously chosen STP base amount, this figure aids in calculating the actual amount to be transferred.

Unitholders can use Turbo STP to transfer varying amounts at predetermined intervals from a source scheme to a target scheme. To maximise the investment growth potential, it also helps to invest more when market valuation is favourable and less when market valuation becomes pricey.

The facility will be accessible weekly, monthly, and for three months.

“Turbo STP is a facility for those market participants having lump sum amount to invest and are confronted with issues regarding market valuations, whether they are alluring or expensive, and the amount they ought to contribute and for what tenure,” said A. Balasubramanian, managing director and CEO, Aditya Birla Sun Life AMC, in a statement regarding the launch. It will enable investing more when market valuations are favourable and less when they are high.