Paytm Money Product Updates: SIPs in Stocks, ETFs4 min readReading Time: 4 minutes
Paytm Money has always intended to bring investment opportunities for all and promotes systematic investments to grow wealth in the long run. Our tech team is aligned to provide tools and features to help investors do the same. One of the most popular features on the app is SIP which can be used for investments in stocks and ETFs along with Mutual Funds.
SIP is a disciplined form of investing where one commits to save and invest every month. In this case, a fixed amount gets automatically deducted from your bank account and is invested into the mutual fund schemes you have chosen. This is a recurring activity that happens on a specific date for a predetermined period of time.
SIPs are increasingly becoming popular and for a good reason. It is a very simple yet powerful mode of investment.
A SIP also utilizes the power of compounding when you invest for the long term. This means that you will not only receive interest on your original investment but also on any interest, dividends, and capital gains that accumulate.
Stocks and ETF SIPs
The feature of stock SIP is powered by a choice of weekly or monthly SIPs in stocks. On the Paytm Money app, if you want to automate the buying of a particular stock, you can either choose monthly by picking the date or weekly, where you can select the day. This way you can start SIP by filling in the quantity and day or date for any stock to automate buying of the stock.
This helps in accumulating stocks that you believe have the potential of gaining in the long run or simply for dividends.
Similarly in ETFs, you can start a weekly or monthly SIP given that they are traded on the stock exchanges just like any other stock.
On the whole, ETFs offer the benefit of passive management, diversification, and liquidity to investors as it actively trades on the exchange throughout market hours like a stock, and you can buy/sell ETF units during market hours to meet your financial requirements.
Investing in ETFs is a smart and convenient way to accumulate wealth for your long-term goals at a relatively low cost.
The Paytm Money app also allows you to automate your SIPs where money is automatically deducted from your fund balance. This way you will never miss your monthly investment.
Paytm Money also notifies investors about the upcoming SIPs which helps them to add funds to their account if necessary.
Benefits of ETF & Stock SIPs
1. Easy on the Wallet
SIP debunks the myth that you need to have an awful lot of money to be able to invest in ETFs and stocks. You can, in fact, start investing in Nifty ETF SIP with as little as Rs.150 every month or week and increase this amount with time.
2. Takes Away the Pressure of Timing the Market
Many investors often get broiled in confusion about when, how or best time to invest, in order to make the most of the market returns. No matter what your level of expertise, there is always a significantly higher risk involved when you invest a lump sum. On the other hand, when investing via SIP, your investment is spread over time and this means that only a certain sum of your entire investment is subject to market volatility.
3. Gives you Rupee Cost Averaging
When you invest via SIP, you are investing throughout the different stages of the market cycle. This simply means that when the market is low, you tend to get more units at a lesser cost and vice versa during market highs. What this does is reduces the per-unit cost of the units purchased, thus averaging out the cost of investment.
4. Incorporates the Power of Compounding
When you invest via SIP, the interest earned on your investment is reinvested which means your returns themselves start earning interest.
5. Helps Build the Habit of Investing
SIPs help instill a sense of discipline as investors are committed to investing a fixed sum of money every month. Even if you were not a regular investor previously, with a SIP you are bound to become one.
How to Start a Stock & ETFs SIP on Paytm Money
1. Search for the stock or ETF you want to start SIP with, open the scrip page
2. At the end of the stock or ETF page, you can see a SIP option
3. Add the number of units and dates or days on which you want the stocks or ETFs to be bought
4. Click on “Start SIP” and automate your investments in stocks
Paytm Money tech team is relentlessly working to make the Paytm Money app a go-to platform for every Indian when it comes to wealth management. The team tries to understand customer issues and work around those issues and solve them. Be it a SIP feature for stocks and ETFs or adding extra charts for customer’s convenience, Paytm Money’s tech team never holds back.
Disclaimer – “Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory.
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