We all are well aware of the benefits of investing in Mutual Funds through SIP route. It is a disciplined way of investing small amounts at regular intervals that helps us to curb volatility through averaging out the cost of purchase.
As we all know that movement in individual stocks tend to be more volatile compared to the NAV movement in Mutual Funds, the benefit of averaging out the cost of purchase is also higher.
Like a SIP in mutual funds, investors who love to invest directly in equities (stocks) can also use the Stock SIP (equity SIP) route to invest in stocks at regular intervals, thereby taking advantage of the unpredictable stock price movements.
Below are the ways to invest in stock sip
Amount based SIP: Investor specifies a fixed amount to be invested every month in the particular stock for a defined time horizon.
Quantity based SIP: Investor specifies a fixed amount to be invested every month in the particular stock for a defined time horizon.
Investment through SIP mode will help avoid timing the market, follow a disciplined approach and helps in curbing the volatility through investing at regular intervals.
You can choose to invest in your favourite stocks
You can increase or decrease the exposure in a particular stock anytime you want
You can avoid the risk of over diversification by having exposure to a limited number of stocks
Can take the benefit of selling the shares anytime during market hours
Create your stock SIP basket in which you want to invest.
Choose either the amount to be invested or the number of shares to be purchased.
Set the date, frequency and the period for which you want to invest.
Every month, on the date chosen, the system automatically executes a buy order for the stocks you have chosen.