Best Brokers for Equity SIP

Equity SIP is a viable investment option for small investors. You can invest in small amounts periodically without worrying about the volatility factor of the market. This approach is best for long-term financial goal achievement. Equity SIP provides the following benefits:

• Based on the concept of Rupee Cost Averaging with this, you are buying Stocks / ETFs on a regular interval, which will average your buying/investment cost. That's the best way of buying stocks for long-term where you don't need to monitor the market every day and wait for the lowest point for investment.
• The simple and disciplined approach towards investment is done on regular intervals irrespective of the ups and downs of the market. You set up a process or Equity SIP request, orders will take place automatically on specific dates as per your guidelines.
• Can be started with a small amount of money invested at regular intervals you don't need a big amount to start your investment, you can start as minimum as Rs 1000 per investment cycle. The minimum investment amount will vary from broker to broker, so please refer your broker's policy for Equity SIP.
• Investment is 100% flexible in terms of the amount or quantity one wish to buy.
• Minimizes volatility risk.
• No additional charges and no entry/exit load.
• No lock-in period, which means you are not bounded, you can sell your holdings any time.
• Long-term financial goals can be met with SIP.

• Regular Fund Transfer needs to be planned in your brokerage account. Usually, Equity SIP is not auto funded via direct bank account.
• Brokerage Charges, as you need to pay the regular brokerage on Equity SIP, if your broker charges, minimum brokerage then you need to pay minimum brokerage for buying 1 or 2 stocks on a regular interval. As well as each script in your Equity SIP Order is considered as a transaction.

You can invest in Equity SIP in two ways amount based or quantity based. All brokers allow you to create multiple SIP request, each request should be either amount based or quantity based, you can mix and match different types in one request.

• An amount based SIP: In this, you define fixed amount for your investment. It is calculated by dividing the SIP amount by Last Trading Price + Buffer (3%) per share. Rounded of quantity will be finalized by the Equity SIP engine to take the buying call before the Equity SIP Order placing.

• Quantity based SIP: In this, you define a fixed quantity of shares/ETFs for your investment. On the specified date, the Equity SIP engine will check available fund in your account and place a buy request.

All these requests are submitted to exchange on availability of funds in your trading account.

Equity SIP is a process which you need to set up one time. Let's discuss the steps which you need to take care to set up your process.

• Login to your broker's online investment portal.
• Under Equity, you will find Equity SIP or Auto Investor SEP or RSP option.
• Under this, you need to define a request by selecting the request type as "Fix Amount" or "Fix Quantity", Select Stocks/ETFs, Select Interval.
• Once you submit your request, the broker will place your Equity SIP Order on your defined date.

The order will be placed as a Market Order only and work same as Cash Market Order.

The Equity SIP request is an authorization given by you to the broker for placing buy orders as per your instructions mentioned in the request.

The orders placed by a broker as per your authorization through the SIP request are called Equity SIP orders.

None of the Discount Brokers are providing the Equity SIP facility. If Zerodha and Upstox start Equity SIP facility, then it will be a big win for investors as both the discount brokers allow FREE Equity Delivery Trading and buying Equity SIP is part of the same bucket. 5paisa, the discount broking arm of IIFL doesn't provide this facility, however its parent company is providing AutoInvest. SAMCO, Fyers, ProStocks, Finvasia, Wisdom Capital also doesn't provide Equity SIP feature.

Thanks for your query, buy stock regularly is a good way to average your holding in the long term. The automatic process is called "Equity SIP". Equity SIPs allow investors to systematically purchase shares / ETFs, through periodic payment either daily, weekly fortnightly or monthly.

Now you have two options:

• Open your trading account with the brokers who are providing the Equity SIP facility and set up your process, so you don't have to worry for buying shares on every cycle. The broker will take necessary action to buy shares in your account on the availability of fund. The only issue is brokerage is much higher, as currently, no discount broker provides this service.
• Open account with Zerodha, Upstox - as they provide free delivery trading service. So you don't have to pay any brokerage when buy a small quantity. The only issue is that you have to set reminders and manually go and buy the shares.