Zerodha is a game changer when it comes to a new age stock broker. It has introduced the zero commission plan on cash market transactions. With this one revolutionary change in the commission, the new era of stock broking has emerged. There are many innovative and customer friendly features like converting intraday order to delivery order, basket order, GTT and many more. In this article we will be discussing on how to setup stock SIP in zerodha, which is another industry first initiative from Zerodha.

How to setup stock SIP in Zerodha?

Stock SIP is the unique way of buying direct stocks of any company at the defined date and quantity. This will help the investor to buy the stock at the regular interval as defined by the investor. Unlike mutual fund, where you will have to buy a bouquet of stocks, here in stock SIP you can setup the SIP for particular stock.

Below is the step-by-step process of setting up the stock SIP in zerodha Kite.

  • Log on to Zerodha Kite application with your login ID and password.
  • Go to the “Orders/tools” tab and then “SIP”.
  • Click on “Create new SIP” link.
  • For setting up the SIP, first you need to create a “Basket”.
  • Click on the create new basket, and give it a name of your choice.
  • Find the stock name for which you want to setup the SIP.
  • Select the stock, add the quantity of the stock you want to buy.
  • Now, you will see the “Monthly schedule” tab on the screen.
  • Choose the date and time for your SIP to execute.
  • You can add up to 5 schedules in one basket.
  • That’s it, your stock SIP is ready to execute on the scheduled set by you.
Source: Zerodha.com

Points to note

  • This feature is only available for delivery based trades in the cash market.
  • Maximum of 50 SIP is allowed on the Kite.
  • You can set up SIP for any amount, but the minimum quantity is 1 share.
  • You can edit/delete the stock SIP at any time.
  • Even you can “Pause” your stock SIP for time being.
  • You need to have adequate funds in your trading account on the date of SIP. (You can set up e-Mandate for fund transfer)
  • Only 1 SIP per day, per time slot is allowed.
  • If your scheduled date falls on a holiday, your SIP order will be sent to the exchange on the next trading day.
  • You can use this facility for systematic withdrawal and transfer as well. (You need to setup the SIP accordingly).
  • Stock SIP by Zerodha is completely free of cost.

Benefits of Stock SIP in Zerodha

  • Invest systematically in direct stocks instead of mutual funds.
  • Complete flexibility of creating SIP, edit, delete and pause options as well.
  • Free of cost.
  • Easy to setup, one time setup and forget it.
  • Withdrawals and transfers are also available through stock SIP.

Who should setup stock SIP in Zerodha?

  • Investors who want to buy direct stocks at regular intervals.
  • For the investors who wanted to build solid long term portfolio on auto mode.
  • Busy professionals who don’t get time to buy a stock on a particular day.

Conclusion

Stock SIP in Zerodha is a unique feature for the people who wanted to buy the stock at the regular intervals. This is a great feature for investor which can save time and money in buying stocks. I have tried this feature by myself and found it very easy and effective. Do let me know in the comment box below in case you need any help in setting up stock SIP in Zerodha.

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