How to setup a stock SIP on Zerodha Kite?
SIP (Systematic Investment Plan) orders allow you to schedule your investments. The SIP feature can only be used for delivery trades in the cash market. To set up an SIP, you will need to go to Orders > SIP > Create new SIP. You can either link an existing basket of orders or create a new basket.
Once you have linked the basket, you can set your preferred scheduled date & time as shown below:
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 also pause, edit, or delete your SIPs using the option shown below:
You need to link one or more existing baskets to create your SIP order schedule. If you link multiple baskets, all the orders will be placed in the same SIP trigger. If you don't have an existing stock basket, you can create a new one. Click here to check how to make a basket.
Funding your SIP order
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 .
Uses for the feature
You can use the feature to perform many functions. We're listing a few below:
- Systematic Investments - The primary function of this feature is to allow you to automate your investments by creating an order basket. 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. While creating the basket that you link to your SIP, make sure to place a market order to ensure execution.
- Systematic Withdrawals - You can 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.
- Systematic Transfers - Assume you want to exit individual stocks and buy other stocks or ETFs with the proceeds to systematically rebalance your portfolio. In this case, you can add both purchase and sell orders to your linked basket. Alternatively, you can link two baskets — one with your sell orders and one with your buy orders. Once the SIP triggers, you will have successfully executed the rebalance.
You can visit this TradingQ&A thread to discuss the above or any other possible uses in more detail.
You can also create SIPs on Kite mobile as shown below:
Some important points:
- You can place a maximum of 50 SIPs on Kite.
- A reminder email is sent one day 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.
- Stock SIPs are completely free. There are no additional charges to place SIP orders for stocks on Kite.