Stock SIP on Zerodha Kite

Online brokerage firm Zerodha has launched a feature that will help the investors to set up stocks and ETFs SIP on the Kite Web portal. Through this feature, users will be able to select the stocks and ETFs and invest in them in a SIP way. Let’s explore this Stock SIP on Zerodha Kite and have a look at how it is done.

Nitin Kamath, the founder of Zerodha had announced this feature on 7th January 2021 via tweet. Below is the tweet posted by the founder declaring the availability of this feature on the Kite web portal. He also added that the same feature will soon be available on the Kite mobile app.

Stock SIP on Zerodha Kite

Before we check the Zerodha Kite application, let’s quickly understand what is stock SIP.

Stock SIP is an easy method of investing in stocks. It helps investors to buy stocks based on the amount or the quantity periodically in a systematic manner. If you are a long-term investor, this method of accumulating quality stocks and building a strong portfolio will certainly for you. In other words, it is a disciplined investment strategy for long-term investors.

Before you buy stocks through Zerodha stock SIP, you need to first set up the ‘basket’. This is nothing but the process of selecting the stock, deciding on investment schedule, stock quantity, etc.

To set up a SIP, you will need to go to Orders > SIP > Create a new SIP. You can either link an existing basket of orders or create a new basket

Once the basket is created, you can setup the schedule of the stock SIP as shown in the below image.

Zerodha Stock SIP – Few Points to Consider

  • You need to link the existing stock basket to the SIP schedule.
  • A maximum of 20 orders can be added to the basket and a maximum of 20 baskets can be created on one Client ID.
  • Users can set up to 5 schedules every 30 minutes on trading day.
  • The schedule timing would be 9 am to 3 pm on trading day.
  • Only one 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 pause, edit and delete the stock SIP through the Kite web portal.
  • You can use the funds available in your account for funding this stock SIP.
  • You can also make use of the e-mandate to fund your Stock SIP.

Benefits of Zerodha Stock SIP

  • You can invest in the stocks in a systematic way.
  • Stock SIP can be scheduled for any trading day.
  • User will have an option to set the SIP time schedule.
  • Easily editable, or you can even delete the same.
  • You can use this facility for even systematic withdrawal from the stocks.
  • You can transfer the stocks and rebalance your portfolio.
  • You will get the reminder e-mail 2 days prior to your SIP date.
  • Existing fund available in your account can be use.
  • Leverage the market timing and create a strong portfolio for long term.

Stock SIP vs Mutual Fund SIP

Most of you have heard the mutual fund SIP. Now let’s see whether it is better as compared to the stock SIP or not? Whether you should invest in the market through stock SIP or not?

Below is the comparison between Stock SIP and Mutual fund SIP.

Stock SIPMutual Fund SIP
Suitable for the novice investorSuitable for the first-time investor
Freedom of choosing the stockInvest in the pre-defined stocks
No expense ratios to be paidExpense ratio to be paid to AMC
Probability of higher returnsProbability of moderate returns
No exit load kind of thingExit load as applicable
No diversification of segmentOffers diversification

If you are a seasoned investor, you can try your hands in stock SIP. Because by this time you have known the market trends and risk associated with the stock investment. So if you want to invest for the long term and for higher return, you can try investing through stock SIP.

Zerodha Stock SIP – FAQs

How can I set up the Stock SIP in Zerodha Kite?

For setting up the stock SIP in Zerodha Kite, you need to first set up the stock basket on the Kite portal wherein you can select the stocks of your choice and buy it on a set intervals.

How many stocks I can buy through this stock SIP?

You can select 20 stocks in 1 basket, and you can have 20 such basket in your portfolio. This can be done through existing Kite portal.

Why Stock SIP is not available on Kite mobile app?

This feature is currently available on the Kite web portal only, but the same will be available on the mobile app soon.

Can I change the SIP date on Kite portal?

Yes, you can change the SIP date or even delete the same as and when you want.

What if my SIP date is on holiday?

If your scheduled date falls on a holiday, your SIP order will be sent to the exchange on the next trading day.

How many SIP can I set for a day?

You can set up 5 SIP for every 30 minutes of slot. The SIP schedule would be from 9:30 am to 3 pm on trading day.

Can I track the profit/loss separate for the Stock SIP?

Currently it is not available for stock SIP to track profit/loss separately. but the same will soon be available.

Is there any additional charges for stock SIP?

No, there is no additional charges for buying stocks through stock SIP on Kite.

Can I set limit order on stock SIP?

Stock SIP on Kite is scheduled based, however, the limit order would also work on stock SIP.

Can I buy Nifty /Sensex (Indicies) through this stock SIP?

No, as of now you can buy only individual stocks through this SIP.

Can I buy international stocks through this SIP mode?

No, its not possible right now.

Can I set the stock SIP based on the amount?

Yes, you can define the stock SIP by the amount you want to invest in it.

Conclusion

The new feature of stock SIP is a great tool for the people who wants to build the portfolio for the long term and create wealth. This feature is suitable for the novice investors who have a good knowledge of buying stocks by them selves. Give it a try if you want to accumulate quality stocks for the long term. Share your feedback on this feature in the comment box below.

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