What is Stock SIP and How to Start Stock SIP

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When hear the word SIP, we will immediately think about mutual fund. Yes, mutual funds are famous to invest through Systematic Investment Plan or SIP. However, lots of investors are not aware SIP in stocks This article tell you what is stock SIP and how to start stock SIP in India.

What is Stock SIP?

Like any mutual funds, investors can start SIP in stocks too. Through SIP n stocks, investors can purchase their intended stocks in a monthly or quarterly time frame. This is similar to the mutual fund SIP, However, here the investors need to contact the broker to start and inform the stocks names to start SIP.

How to start SIP in stocks

Most of the brokers have the options for their customers to start. As it is a direct investment into the stocks, investors required to have a brokerage as well as DMAT account to set up Stock SIP.

Most reputed stock brokers in India offers the facility of starting monthly SIP in stocks. In order to start a stock SIP, Investors can contact their broker offices to know more about this.

Benefits of stock SIP

Stock SIP or Equity SIP have its own advantages. Here are few:

  • Investors have options to select their preferred stock/s to add in their SIP portfolio
  • It is easy to setup with a trading account and can purchase, daily, weekly, monthly, quarterly or any duration that an investor like to buy.
  • Stock SIP will give high benefit from compounding and dollar cost average
  • It can start even with 500 rupees per month. Ask your broker about the minimum amount to start SIP in stocks.
  • Stock SIP is a best and affordable option for those are interested to invest money little by little, but regularly.
  • This is best way to create a portfolio for long term. Read how I created 10 stock portfolio with the best companies
  • Investor have options to stop the stock SIP at any time.
  • Stock brokers have the facility for investors to select and recommend the best stocks as per their research.
  • Sip in Stocks is a great facility for investors to create an investment portfolio systematically by investing money little by little regularly for long term.

Happy investing..