You can now set up Equity SIP (Systematic Investment Plan) orders for stocks and ETFs on Kite web. These orders allow you to invest in stocks, ETFs, or groups of stocks and ETF at regular intervals just like a mutual fund SIP. Currently, in beta, this will be soon available on Kite mobile as well.
The first step to creating a new SIP is creating a basket (an order type to place multiple orders at the same time). A basket can have one or more stocks and ETFs. The idea behind asking to create a basket is that you can create a SIP towards a goal as a basket — which could be a basket of stocks and ETFs.
Name the basket and add the scrips that you want to SIP. The basket can be of 1 scrip or many scrips.
Make sure to keep all the orders in the basket as market orders to ensure that your SIP is guaranteed execution
A few things you should know before setting up a SIP:
You can set up to 5 schedules every 30 minutes for any day of the month between 9:30 am to 3 pm. Only one SIP per day per time slot is allowed. If your scheduled date falls on a holiday, your SIP order will be sent to the exchange on the next trading day.
You can use the funds available in your account for your SIP order. In order to automate funding to your account for your SIPs, you can make use of the e-Mandates feature on Zerodha Console. Learn more
You can place a maximum of 20 SIPs on Kite.
A reminder email is sent 2 days before the SIP scheduled date to your registered email ID. An intimation email is sent when the SIP triggers.
The schedules in the stock SIP feature will not be automatically modified in case of corporate actions like dividends, splits. etc. or category changes on the exchange. You can manually track the corporate actions & category changes for updating your stock SIP.
This has been a long-requested feature, especially for those wanting to SIP on ETFs.
PS: Another use case of our SIP feature is that it can also be used to systematically exit individual stocks or your portfolio. For example, if you hold say 1000 shares of stock X and don’t want to exit at one time, you could do it systematically. When you add scrip to the basket, by default it is a buy order, you can use the toggle button to switch it to sell order. You can then schedule the SIP to sell.
That will great Nithin. Right now, a lot of us doing SIPs on ETFs probably would be using smallcases to track the net asset value of our “SIP basksets”
This is great Nithin.
Just checked your reply on @Nishantr comment. It’d be great if you guys can also implement a feature where I can lock my stocks.
This can be a good feature for people who want to invest for long term but can loose control because of short term bias. The lock might not be a permanent lock for a fix duration, but something like password protect some funds.
Also, if we can have functionality of tagging stocks to goals, that would be awesome.
Great feature. Will it be possible to buy and sell a basket on adhoc basis. Something like 1 basket consists of 10 shares of RIL, 20 shares of HDFCBANK. Is it possible to buy 3 baskets and sell 2 baskets on Adhoc basis
Looks like Basket is tied to Buy Order or sell Order. I think we need to create two similar Baskets. One for Buy and Other for Sell. Will test the scenario tomorrow
I’ve been earlier using smallcase to create baskets to add stocks every month. Multiple smallcases for adding the same bunch of stocks in different time frames.
If we do SWP in any accumulated stock.
What will be the hidden charges like DP Charges. Suppose I have accumulated 1000 stocks and selling 10 times in group of 100 stocks. What will be DP and brokerage charges for this situtaion??
Well it’s good but the fact is it makes investors less greedy in corrections or drops. It doesn’t allow people to set amount of money per SIP like 10K per month for bucket or SIP.
So it will kee on buying X number of stocks in dips and corrections instead of X amount of money.
The amount as input works in MF SIP, that’s what is necessary I guess.
I was presuming that this feature will allow someone to set up a SIP for SGBs (or maybe even G-Secs) but then I remembered that those require Limit orders (found it mentioned in a support page as well) -
Secondary Market
SGBs are listed on the exchange 10-15 days after the issue and can be traded on Kite. Do note that only orders with Limit CNC orders are allowed due to illiquidity in the segment. Once you purchase SGBs from the secondary market, it will take T+2 days for the SGB to show up in your account as per the settlement cycle.
Is there a way to SIP into SGBs using market orders for guaranteed execution or will only limit orders work due to the illiquidity in that segment?
What ankur0101 has written is absolutely correct. SIPs are useless without being able to set an SIP amount. With this, all the benefits of an SIP are lost.
Nithin, please consider a “total amount” input and a ± % value. Whatever amount of shares can be purchased within that amount should be bought automatically. This will be super beneficial. SIP based on a fixed number of shares is not useful.
Market order on ETFs are risky. There is huge variation between Intraday NAV and price of many ETFs. Can we have a feature to display iNAV in Kite terminal itself in real time and also schedule limit order at iNAV or maybe at 1 or 2 paise above for better chance of execution.
