Under Systematic Transfer Plan (STP), an amount you opt for is transferred from one mutual fund scheme to another of your choice, at regular intervals. Typically, a minimum of six such transfers are to be agreed on by investors. The mutual fund will reduce the number of units equal to the amount you have specified from the scheme you intend to transfer money. At the same time, the amount transferred will be utilized to buy the units of the scheme you intend to transfer money into, at the applicable NAV. Some fund houses allow transferring only the capital appreciation at regular intervals.