Hi Team Zerodha,
I have been a long-term investor using Kite for my monthly Gold ETF investments. Currently, I use the Basket SIP feature paired with a bank mandate to automate my investments.
However, since ETFs are traded like stocks, the SIP engine is strictly Quantity-based. This presents a friction point for long-term investors who want to invest a fixed sum (e.g., ₹5,000) every month. Because gold prices fluctuate, I currently have to manually calculate and update the quantity in my basket every month (Quantity = Fixed Amount / LTP).
The Suggestion:
Could Zerodha introduce an ‘Amount-based’ toggle for ETF SIPs?
Even without ‘fractional shares,’ the system could simply:
- Check the Market/Limit price at the time of SIP execution.
- Calculate how many whole units fit within the user’s defined ‘Fixed Amount.’
- Execute the order for that calculated quantity and leave the small remaining balance in the Kite ledger.
This would bring the ‘set-and-forget’ convenience of Coin (Mutual Funds) to the cost-effective world of ETFs on Kite. It would be a game-changer for disciplined, minimalist investors who prefer ETFs for their lower expense ratios and transparency.
Looking forward to seeing this in a future update!
#kite #feedback