Looking for small but regular savings? Just setup equity SIP with a few clicks!6 min read
We understand that investing in equities sounds extremely confusing and daunting – from constantly monitoring markets to selecting the right equity while also maintaining your risk appetite – it’s undoubtedly a time-consuming and labour-intensive process.
This is where Equity SIP can help investors save time and effort, as you can maximize your returns in an uncertain market by adhering to the structured investment approach provided by these SIPs.
Before we go any further, let’s go over the fundamentals of the Equity SIP, also known as the Stock/ETF SIP.
1. Introduction – Equity SIPs
Similar to mutual fund SIPs, regularly investing your funds through equity SIPs provides you with the opportunity to invest in shares and ETFs. Instead of investing a lump sum amount, equity SIPs let investors invest regularly, and spread their investments over a period of time.
2. Benefits of Equity SIPs
Every investor wishes to invest in a particular stock when its price is at the lowest in the market – yes, we all want to time the market. Nevertheless, even if you have the necessary skills, this can be difficult because it necessitates constant market monitoring, which is, to put it bluntly, very tiresome; and, what if the stock price drops even further?
You end up buying the stock at a higher price, thereby losing on the profits you could have made.
Here are some of the reasons why you should start investing in Equity SIP:
- Affordable with less burden on your pocket
Equity SIPs let investors invest a small amount of money spread over a period of time, and meet their financial goals within the stipulated time.
- Creates habit of investment
Equity SIPs involve making regular scheduled investments at intervals such as weekly, or monthly, according to your preference. By adhering to a predetermined investment schedule, you can maintain discipline in your investing habits and better plan your finances.
- Cushioned from market risks
Since investors invest over a period of time in small quantities, you are saved from the sudden spikes of the market, by staying invested.
The concept of “Rupee Cost Averaging” works in your favor here; where your disciplined investing approach allows you to buy more quantities of stock with the same SIP amount at lower prices, thus benefitting in the long term.
- Hassle free investment
Investors do not have to fret anymore to keep doing their own market research or stock’s due diligence. Since it promotes disciplined investing, investors do not need to monitor markets in a daily basis.
3. How to start an Equity SIP on Paytm Money?
Our investment & trading ideas enable you to start your first Equity SIP.
Here are the step-by-step instructions for you to follow to quickly start your Equity SIP:
1. Scroll to investment and trading ideas on the main screen of Paytm Money. You’ll find an icon of Equity SIP.
2. Click on the Equity SIP icon. It will lead you to the dashboard consisting of stocks under Nifty50 and Large Cap ETFs.
3. You can scroll through the list of stocks to find the one or more you want to invest in.
4. All stocks shown on the list comes with the following information:
- Current Stock Price
- Changes in the Stock Price
- Industry/Category of Stock
- Information regarding the returns over a period of 1 year, 3 years and 5 years
This information enables investors to make the correct decision about investing in the right stock as per their risk appetite.
5. After selecting the stock of your choice, click on the “Start SIP” button.
6. You can now take the following actions for your SIP:
- You can choose between investing monthly or weekly, as per your investment frequency.
- You can choose to buy a fixed number of shares or invest a fixed amount on the SIP date by selecting either of the options here at your convenience.
- Next, you can choose the day of investment every month. In case you opt for weekly investment, you’ll be nudged to choose the day of the week.
- After mentioning all the details, you can start your SIP with a click of a button.
7. Fear not if you forget to start your SIP; Paytm Money ensures that you are disciplined with your equity SIP.
- We notify you on the date of SIP that you have chosen.
- We nudge you to make sure that the required funds are already available before the SIP day.
4. Make entire investment process automatic – Setup AutoPay Mandate
We understand that it’s hard to keep a check on your payments and investments especially when they are recurring in nature. Worry not, we recommend you to set up autopay mandates with just a click of a button.
If you have a UPI ID already created, you can enter the same, and we’ll ensure your equity SIP payments are never missed.
5. Before you start your Equity SIP, please go through these FAQs
- What’s the difference between amount based and quantity based Equity SIP?
Amount based Equity SIP is a type of SIP where a fixed amount (or a similar amount) is invested in your chosen stock at regular intervals. When selecting an amount-based SIP, you must specify the amount to be invested in the stock at the desired frequency.
Whereas, in Quantity based Equity SIP, a fixed quantity of shares of your desired stock is purchased at each frequency.
- Can I modify my Equity SIP?
Just like Mutual fund SIP, you can modify/edit your Equity SIP by modifying the specific instructions like frequency (monthly or weekly), amount or quantity of stocks.
As every serious investor keeps suggesting “there’s no right time to invest in the right stock – it’s always today”.
With Paytm Money Equity SIP, investors can stay in the game of the equity market without the hassle of researching the market, while also protecting themselves from the risk of market ups and downs and achieving their long-term financial goals.
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. The securities /funds are quoted as an example and not as a recommendation. Brokerage will not exceed the SEBI prescribed limit. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete Terms & Conditions and Disclaimers visit: https://www.paytmmoney.com/stocks/policies/terms