Zerodha Equity SIP

Zerodha offers a stock Systematic Investment Plan (SIP) feature on its Kite platform, allowing you to invest in stocks regularly. This is similar to a mutual fund SIP, but for stocks.

Zerodha Equity SIP (Systematic Investment Plan) or Stock SIP is the best way to automate investing in stocks or ETFs at a regular time interval, i.e., weekly or monthly.

Want to set up SIP in stocks with Zerodha but don’t know how? Here is the step-by-step guide to buy a stock SIP on the Zerodha Kite app and website. Also, find details on creating a SIP basket, Zerodha equity SIP creation charges, brokerage fee, and more.

Zerodha SIP in Stocks (Zerodha Equity SIP)

Equity SIP simply means buyingSIPs in shares/stocks. The stock SIP feature allows investors to buy stocks or ETFs in a disciplined manner at a fixed interval. Just like SIPS in mutual funds, equity SIPS are done in shares.

Zerodha, one of the most popular discount brokers, allows users to purchase stock SIPS. In Zerodha stock SIP, an investor can place an order to buy a specified quantity of shares atscheduled intervals, i.e., weekly, monthly, fortnightly, or daily. Thus, stock SIPS are used to automate investment in equities.

• It is the ideal investment method for long-term investors to invest systematically in their favourite companies.
• The stock SIP feature in Zerodha can be used only for delivery-based trades in the cash market.
• You can set up a stock SIP on the Zerodha Kite platform (mobile app or web) by creating a basket of securities.

Key Features of Zerodha Equity SIP

• Minimum investment: There’s no minimum investment required to create a stock SIP in Zerodha.
• Basket creation: You must create a basket on Kite to buy stock SIPs in Zerodha.
• Maximum SIP: 50 SIPS can be placed on Kite.
• Charges: Stock SIPs in Zerodha are free, with no additional charges.
• Automated process: Equity SIP allows you to automate your share investment.
• A reminder email will be sent one day before the scheduled SIP date.
• Flexibility to pause, modify, or delete stock SIPs anytime.
• SIPs are not automatically adjusted for corporate actions like dividends or stock splits.

Zerodha Stock SIP Charges

No charges, Yes!

• Zerodha SIP Creation charges: There are no additional charges for creating and maintaining a stock SIP in Zerodha Kite.
• Zerodha Equity Delivery brokerage: Rs 0 brokerage, Zerodha offers free equity delivery transactions, which means you can invest in stocks via SIPs without paying brokerage fees.

How to Set up Stock SIP on Zerodha Kite?

Step-by-Step Guide Explained:

Want to invest regularly in stocks? Equity SIP is the best option to automate your investment. The process to set up equity SIP in Zerodha follows these steps:

Step 1: Basket creation: Create a basket of stocks or ETFs in which you want to start SIP..

Step 2: Create and Place an Equity SIP order:

Set up SIP in stocks using the Kite mobile app or website.

• Go to the SIP section on Kite.
• Choose the basket of stocks you want to invest in.
• Select the date and time you want the SIP to be executed.
• You can schedule up to five SIPs for any day of the month between 9:30 am and 3 pm, with 30-minute intervals.

Step 3: Order execution: Once the share SIP is set up, the order will be placed on the scheduled SIP date.

Let’s discuss each step in detail:

How to create SIP Basket in Zerodha?

To create a Stock SIP in Zerodha, you must create a basket by adding stocks or ETFs of your choice. Each basket can have a maximum of 20 stocks or ETFs.

Once the basket is created, you can place an equity SIP order by linking it to the basket and scheduling the execution.

1. Log in to your Zerodha account on Kite.
2. Go to Orders.
3. Tap on Baskets.
4. Click on +New basket option.
5. Give a name for the basket creation.
6. Search and add the stocks or ETFs, you want to add in the basket.
7. You can view the existing baskets under the Baskets tab.

Steps to create SIP in Stocks on Kite app:

1. Log in to the Kite mobile app.
2. Tap on Orders.
3. Click on SIP tab.
4. Add +New SIP.
5. Enter SIP name.
6. Link any existing SIP basket or create a new basket of stocks.
7. Select the basket.
8. Set date and time to purchase stock SIP.
9. Swipe on the Create option.

That’s it!

Steps to create SIP in Stocks on Kite Web:

1. Log in to the Kite website.
2. Go to Orders – SIP.
3. Click on +New SIP option.
4. Enter the name.
5. Link existing basket or click to create a new basket.
6. Select the basket.
7. Set date and time for SIP investment.
8. Swipe on Create.

Note: To track all active stock SIPs, log in to Zerodha Kite platform >>> go to orders >>> and click on the SIP option.

Key Things to know before creating Zerodha SIP in stocks:

• You can create up to 5 schedules per SIP for any day of the month.
• You can schedule your SIP anytime between 9:30 AM to 3:00 PM within a 30-minute interval.

Each time slot allows one SIP per day.

• If the SIP date falls on a holiday, the SIP order will be executed on the next trading day.
• You can link a maximum of 3 baskets in the SIP order schedule.
• To buy SIP in stocks, you can place a market or limit order. However, executing a limit order (orders placed at a specified price) is not guaranteed.

Zerodha SIP Scheduling Options

Zerodha allows flexibility to schedule your SIPs:

• Daily
• Weekly
• Fortnightly
• Monthly

In Zerodha, you cannot specifically choose daily, weekly, etc. SIP schedules, while you can select specific dates to execute your SIP order.

E-mandate to transfer SIP funds from Bank account to Zerodha account

The amount is deducted from your Zerodha trading account balance for Stock SIP, so you need to maintain the required margin. The SIP payment will not be executed if there is insufficient balance. The e-mandate feature can be used to ensure that your Zerodha trading account has the required balance.

You can register e-mandate on the Zerodha console and set up a scheduled fund transfer to automate the process of moving funds from your bank account to your Zerodha account.

Follow these steps to register e-mandate on Zerodha Console:

1. Log in to the Zerodha Console.
2. Go to Funds tab.
3. Click on Bank mandates.
4. Click on Create a new mandate.
5. Select the bank account.
6. Authenticate the bank account using a debit card or net banking
7. Follow the on-screen instructions to complete the bank’s mandate approval.

The bank may take up to 5 days to activate the mandate. Once the mandate is registered, create a schedule to transfer funds to the Zerodha account.

Follow these steps to create a schedule:

• In the Set Schedule tab, enter the name of the schedule
• Select the fund transfer date
• Select the frequency and enter the amount to be transferred
• Click on Create a schedule

There are no charges for eMandate registration.

Final Verdict

Zerodha’s Stock SIP feature is a cost-effective way to invest in equity stocks systematically, with zero brokerage and no additional SIP-related charges. Buying SIP in shares is an excellent option for long-term investors to invest in stocks at regular intervals while mitigating the market volatility risk. Start SIP in your favourite stocks or ETFs today and move closer to your financial dreams.