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.
Here’s how to set up a SIP:
Click on the “Orders” tab and select SIP
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
Enable the SIP by giving it a name, selecting the basket, and schedule.
Once the SIP order is placed you can edit/delete/pause by hovering on the pending order
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.