Today’s article will discuss How to Start SIP in Zerodha? Before that, we will understand what is it with features and benefits on the same.
Stock SIP vs Mutual Funds SIP in Zerodha
A SIP, or systematic investment plan, is a way to invest a fixed amount of money at regular intervals, such as monthly, in a stock or mutual fund. Both stock SIPs and mutual fund SIPs can be set up in Zerodha.
Stock SIPs in Zerodha allow you to invest a fixed amount of money in a particular stock at regular intervals. This can be a good option for those who want to build a portfolio of individual stocks over time. However, it is important to note that investing in individual stocks comes with a higher level of risk compared to investing in a diversified portfolio of stocks or mutual funds.
Benefits of Stock SIP
There are several benefits to setting up a stock SIP in Zerodha:
- Dollar-cost averaging: By investing a fixed amount of money at regular intervals, a stock SIP can help you take advantage of dollar-cost averaging. This means that you will be buying more shares when prices are low and fewer shares when prices are high, which can help reduce the overall cost of your investment.
- Convenience: Setting up a stock SIP in Zerodha is easy and convenient. You can set up the SIP to automatically invest a fixed amount at regular intervals, so you don't have to worry about remembering to make a trade.
- Flexibility: Zerodha allows you to change the amount of your investment, the frequency of the investment, and the stock you are investing in at any time.
- Investing small amount: Stock SIPs allow you to start investing with a small amount of money, and then increase the amount over time as your financial situation improves.
- Building a portfolio: Stock SIPs can be a good way to build a portfolio of individual stocks over time. This allows you to pick and choose the stocks that you want to invest in, rather than relying on a professionally managed fund.
- Lower brokerage: As you are investing in small amounts regularly, the brokerage cost will also be low. Zerodha charges a brokerage of 0.03% or Rs 20 whichever is lower for intraday trades, which makes it a cost-effective option for stock SIPs.
Mutual Fund SIPs in Zerodha allow you to invest a fixed amount of money in a particular mutual fund at regular intervals. Mutual funds are professionally managed portfolios of stocks, bonds, and other securities. funds can offer diversification and professional management, which can help reduce risk and increase returns over time.
Benefits of Mutual Fund SIPs
There are several benefits to setting up a mutual fund SIP in Zerodha:
- Professional management: Mutual funds are professionally managed portfolios of stocks, bonds, and other securities. By investing in a mutual fund SIP, you can benefit from the expertise and experience of professional fund managers who have the resources and knowledge to research and select investments.
- Diversification: Mutual funds typically invest in a diversified portfolio of securities, which can help spread risk and potentially increase returns over time.
- Convenience: Setting up a mutual fund SIP in Zerodha is easy and convenient. You can set up the SIP to automatically invest a fixed amount at regular intervals, so you don't have to worry about remembering to make a trade.
- Investing small amount: Mutual Fund SIPs allow you to start investing with a small amount of money, and then increase the amount over time as your financial situation improves.
- Lower brokerage: Zerodha charges a brokerage of 0.1% or Rs 20 whichever is lower for delivery trades, which makes it a cost-effective option for mutual fund SIPs.
- Access to various funds: Zerodha offers a wide range of mutual funds to choose from in its platform called Coin. It has both direct plans and regular plans of mutual funds which allows you to pick the best fit for your investment strategy.
- Transparency: Mutual funds have to disclose their portfolio holdings on a regular basis, which allows you to understand the underlying investments of the fund and track the fund's performance.
How to Start SIP in Zerodha?
Both stock SIP and mutual funds SIPs can be set up in Zerodha. Zerodha allows you to invest in direct mutual funds and also has a platform called Coin which allows you to invest in mutual funds.
Please note that Zerodha's policies, fees, and other details are subject to change over time and it's always good to check their website for the most up-to-date information.
Time Needed : 2 minutes
Starting a stock SIP in Zerodha is a relatively simple process. Here are the steps to follow:
Log in to your Zerodha account
You will need to have an active Zerodha account to start a stock SIP. If you do not have an account, you can open one by visiting the Zerodha website and following the instructions.
Go to the "Stocks" section
Once you have logged in to your account, navigate to the "Stocks" section.
Place a buy order
To start a stock SIP, you will need to place a buy order for the stock you wish to invest in. When placing the order, you will have the option to select "SIP" as the order type.
Create New Basket
Create a new SIP along with the basket name.
Add stocks
Search and add stocks along with the quantity to the basket.
Stocks List
Now you can see the list of stocks in the basket. Now click on the back button.
Set the SIP frequency
Next, you will need to set the frequency of the SIP.
Review and confirm
Review all the details of the SIP, such as the frequency, basket, and then confirm the order.
Monitor your SIP
After you have started your SIP, you can monitor it by going to the "SIP" section in your Zerodha account. Here, you will be able to see the pause and edit options of your SIP, including the next installment date.
How to Start Mutual Funds SIP in Zerodha?
Link - How to Invest in Mutual funds through Zerodha? - Best ELSS Funds in 2023
FAQs
Can I change the amount of my SIP in Zerodha?
Yes, you can change the amount of your SIP in Zerodha at any time by going to the "SIP" section in your account and making the necessary adjustments.
Can I stop my SIP in Zerodha?
Yes, you can stop your SIP in Zerodha at any time by going to the "SIP" section in your account and canceling the SIP.
How can I monitor my SIP in Zerodha?
You can monitor your SIP in Zerodha by going to the "SIP" section in your account. Here, you will be able to see the details of your SIP, including the next installment date, the total amount invested, and the current value of the investment.
Is there any brokerage charged for SIP in Zerodha?
Zerodha charges a brokerage of 0.03% or Rs 20 whichever is lower for intraday trades and 0.1% or Rs 20 whichever is lower for delivery trades for SIPs.
It's always a good idea to consult with a financial advisor or do your own research before deciding which option is best for you. It's also important to note that your risk appetite, financial goals, and time horizon should be taken into account when making an investment decision.