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Investment

SIP vs STP – Which is a Better Investment?

Over the last few years, the country's capital market has undergone significant changes. One of the most notable trends has been the growing popularity of mutual funds. According to the latest reports, the number of investor folios has increased from 9.15 crore in June 2020 to a substantial 24.23 crore in June 2025. The reasons behind this surge in mutual funds are professional fund management, diversified investments, affordability, and, of course, liquidity. As mutual funds in India are regulated by the Securities and Exchange Board of India, they also offer investors a sense of security. MFs also allow you to choose from a plethora of options. And SIPs and STPs are some common options that you, too, may have come across. If you are wondering which of the two is a better investment, you are at the right place. Confused between SIPs and STPs? Are they the same or different? Read on to learn more.