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Best Brokers for Equity SIP


Best Brokers for Equity SIP

Equity Systematic Investment Plan (Equity SIP) also known as Systematic Equity Plan (SEP) or Regular Stock Purchase (RSP) facilitates investors to build a portfolio over a longer time horizon with small investments at regular intervals. This, in turn, reduces the risk of market volatility. Investors can choose between quantity-based or an amount based SIPs in Equity, Equity ETFs and Gold ETFs.

Equity SIPs allow investors to systematically purchase certain shares / ETFs, through periodic payment either daily, weekly fortnightly or monthly. This is especially beneficial for salaried investors who prefer to build a long-term portfolio in stocks / ETFs without investing a lump sum.

To play safely in the stock market and wants to be a long-term investor rather than a trader, then Equity SIP will be a good option. We recommend our user community of small investors who can't invest lump-sum to start Equity SIP. It is a disciplined investment strategy for long-term goals. Other than high brokerage charges, we don't see any disadvantage of Equity SIP. Current list of "Best Stock Brokers for Equity SIP" or "Top 5 Stock Brokers with Equity SIP feature" is from full-service brokers only, we assume key discount brokers will also start this service soon, so small investors get the benefit of it.

Best Brokers for Equity SIP 2022

Broker Delivery Reason Account Opening Demat AMC Review Request Callback
IIFL SecuritiesFlat Fee Rs 20IIFL Equity SIP
IIFL has Equity SIP facility, where clients can invest in Equity or ETFs on a regular interval. Rs 10 per Installment will be charged for placing Equity SIP orders other than normal brokerage and applicable charges.
Rs 250 (Rs 0, Promotion offer)Rs 450 PA (Waived for 1st year)IIFL Securities ReviewOpen Account
ICICIDirect0.55% or 55 paisaICICI Securities SEP
The Equity SIP facility with ICICI Direct is called Systematic Equity Plan (SEP). In SEP, you can invest in selected equity and/or ETFs at regular interval through the automatic set up process. You need to set process once and your recurring investment will be taken care by ICICI Direct. The SEP can be done either in Fix Amount or Fix Quantity at the defined interval (Daily, Weekly, Fortnightly or Monthly).
FreeRs 600 PA (Waived for 1st year)ICICIDirect ReviewOpen Account
AxisDirect0.5% or 50 paisaAxis Direct Equity SIP - "Systematic Investment Plan"
Axis Direct Equity SIP is a facility with which investor can invest systematically and in a disciplined manner for collection of one or more stocks or ETFs. One SIP should have a common trigger date and frequency. It allows you to invest in stocks or ETFs by making periodic investments (Daily, Weekly, Fortnightly, and Monthly). The minimum Investment amount is Rs 750. Axis Direct will keep 3% of LTP as a buffer to do the calculation for buying a script under Equity SIP.
Rs 999Rs 750 PA (Waived for 1st year)AxisDirect ReviewOpen Account
EdelweissFlat Rs. 10 per executed orderEdelweiss Broking Ltd - "Equity SIP" or "eSIP"
Edelweiss Broking Ltd is offering Equity SIP “eSIP” as well as Equity SWP “eSWP” facility also. You can place Equity SIP/SWP request on any scripts. Edelweiss research team will give you a list of 5 stocks as a recommendation for eSIP.
FreeRs 300 PA (Waived for 1st year)Edelweiss ReviewOpen Account
HDFC Securities0.5% or 50 paisaHDFC Securities DIYSIP
Do It Yourself Systematic Investment Plan (DIY SIP) is a self-investment plan in Equity. This is similar to ICICIDirect/ICICISecurities Systematic Equity Plan (SEP). In this product, HDFC Security is allowing Investors to buy Equity, Gold ETFs or Index ETFs in a disciplined manner. When it comes to buying scripts on a regular interval, you can opt Fix amount or Fix Quantity option. Interval can be Daily, Weekly, Fortnightly or Monthly. Company charge 249+ Tax as a onetime fee to initiate DIY SIP service. For DIVSIP you have selected a list of scripts and ETFs. The investor needs to choose from that stock list. One can make multiple baskets with different investment dates.
Rs 999Rs 750 PA (Waived for 1st year)HDFC Securities ReviewOpen Account
Kotak Securities Flat Rs. 20 per order or 0.25% whichever is lowerKotak Securities Auto Invest
Auto Invest is a similar feature of Kotak as ICICIDirect / ICICISecurities Systematic Equity Plan (SEP). Generally, when we talk about a systematic investment plan (SIP) we always think about Mutual fund SIP. But big banks allow you to invest systematically in equity via SEP or Auto Invest. Kotak Security Auto Invest is a process where you can choose from a selected list of stocks and start Daily, Weekly, Fortnightly or Monthly buy option. For SEP, you have two options - Fix Quantity or Fix Amount. In Fix quantity option you can specify the fixed number of shares by a script on a given time interval. In Fix amount option, you can specify the fixed amount on a given time interval. In both the cases, Equity will be added to your account from market order @10:30 AM.
Rs 750Rs 600 PAKotak Securities ReviewOpen Account

List of full-service stock brokers missing Equity SIP Service.

Few big brokerage houses like Sharekhan, Geojit, Angel Broking, Motilal Oswal, Religare, and SMC Global are missing Equity SIP product from their portfolio.

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FAQs

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.

 


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