Systematic Investment Plan (SIP) is a popular investment strategy that allows individuals to invest a fixed amount in a chosen asset at regular intervals Zerodha’s Kite platform offers a convenient way to set up and manage stock SIPs, enabling investors to automate their investment process and benefit from rupee-cost averaging.
This comprehensive guide will walk you through the steps of creating a stock SIP on Kite, providing clear instructions and addressing frequently asked questions.
Prerequisites for Setting Up a Stock SIP on Kite
Before you begin ensure you have the following:
- Active Zerodha account: You need an active Zerodha trading account to access the Kite platform and create SIP orders.
- Sufficient funds: Ensure your Zerodha account has sufficient funds to cover the initial investment and subsequent installments for your chosen SIP.
- Basket of orders: Create a basket of orders containing the stocks you wish to invest in through the SIP. You can link an existing basket or create a new one.
Creating a Stock SIP on Kite: Step-by-Step Guide
Kite App:
- Open the Kite app and navigate to the “Orders” section.
- Tap on “SIPs” and then “New SIP.”
- Enter a name for your SIP.
- Link an existing basket of orders or create a new basket by clicking on “New basket.”
- Select the basket and set the preferred scheduled date and time.
- Swipe on “Create” to confirm and activate your SIP.
Kite Web:
- Log in to Zerodha Kite web and navigate to the “Orders” section.
- Click on “SIP” and then “New SIP.”
- Enter a name for your SIP.
- Link an existing basket of orders or create a new basket by clicking on “New basket.”
- Select the basket and set the preferred scheduled date and time.
- Click on “Create” to confirm and activate your SIP.
Frequently Asked Questions (FAQs)
Q: Can I schedule SIPs based on specific days like weekly or monthly?
A: While you cannot specifically choose weekly or monthly schedules, you can select specific dates. Up to 5 schedules can be set for any day of the month between 9:30 AM and 3:00 PM with a 30-minute interval.
Q: What is the minimum amount for a Stock SIP on Kite?
A: The minimum amount for a Stock SIP on Kite is ₹100.
Q: Do I need to add funds to my Zerodha account for SIP?
A: Yes, you need to ensure your Zerodha account has sufficient funds to cover the initial investment and subsequent installments for your chosen SIP. You can automate funding for SIPs using the e-Mandates feature on Zerodha’s Console platform.
Q: Can I modify or pause a Stock SIP?
A: Yes, you can modify or pause a Stock SIP at any time. To modify, go to the “SIPs” section in Orders and click on the “Modify” option next to the desired SIP. To pause, click on the “Pause” option.
Q: Are there any charges for using Stock SIP on Kite?
A: No, Stock SIPs on Kite are completely free, and there are no additional charges.
Q: What happens if the scheduled date for my SIP falls on a holiday?
A: If the scheduled date falls on a holiday, the SIP order will be sent to the exchange on the next trading day.
Q: How many SIPs can I place?
A: You can place a maximum of 50 SIPs.
Q: Will I receive any notifications about my SIP?
A: Yes, you will receive a reminder email to your registered email ID one day before the scheduled SIP date. An intimation email will also be sent when the SIP is triggered.
Q: What happens if there are corporate actions on the stocks in my SIP basket?
A: Corporate actions like dividends, splits, and category changes on the exchange will not automatically modify the schedules in the stock SIP feature. You will need to manually adjust your SIP orders accordingly.
Q: Can I use Stock SIP for intraday trading?
A: No, Stock SIP is only available for delivery trades in the cash market.
By following these steps and understanding the FAQs, you can effectively create and manage Stock SIPs on Zerodha’s Kite platform, automating your investment process and achieving your financial goals.
How to complete payments for the purchase orders on Coin?
Investments in mutual funds cannot be made with money from the Zerodha account. Money from primary or secondary bank accounts associated with Zerodha must be transferred to Indian Clearing Corporation Ltd (ICCL), a BSE subsidiary, in order to purchase mutual funds.
The Coin app’s new payment flow looks like this:
- Payments up to ₹1,99,999 can be made for orders using UPI.
- Netbanking is an option for payments for orders up to or exceeding ₹2 lakh.
The only payment methods accepted from the secondary bank account are RTGS and NEFT. Payments via RTGS, NEFT, or UPI can be made from the primary bank account.
The cut-off timings vary depending on the bank the funds are being transferred from. List of supported banks for direct and non-direct settlement (DOC).
Liquid schemes
| Payment mode | Order type | Cut-off time | Applicable NAV |
| UPI | Lumpsum and SIP | 12:30 PM | T -1 day |
| Netbanking (direct settlement banks) | Lumpsum and SIP | 12:30 PM | T -1 day |
| Netbanking (non-direct settlement banks) | Lumpsum and SIP | 12 AM to 11:59 PM | T day |
| NEFT and RTGS | Only for lumpsum | 12:30 PM | The NAV may vary from T-1 day to T+5 day, depending on the day the funds are credited to ICCL’s bank account. |