What is StockSIP?

StockSIP is like a smart savings plan for stocks. It combines the idea of saving regularly with the benefits of investing in the stock market. Just like you save a fixed amount every month in your piggy bank, StockSIP allows you to invest a fixed amount or fixed qty at regular intervals in the stocks you like.

How StockSIP Works:

Imagine you want to buy a car. If it's expensive, you might save a little money every week until you have enough to buy it. StockSIP works similarly. You put a fixed amount of money every day/week/fortnightly/month into buying stocks, regardless of whether their prices are high or low. This way, you buy more stocks when prices are low and fewer when prices are high.

Benefits of StockSIP:

a. Easy and Disciplined: StockSIP makes investing easy. By saving regularly you develop a good habit of investing without much effort. It helps you stay disciplined, so you don't get tempted to buy or sell stocks impulsively.

b. Start Small: Investing in stocks can be expensive, but StockSIP lets you start with a small amount. You can increase your investment over time as you become more comfortable.

c. Emotion-Free Investing: Emotions can cloud our judgment when it comes to money. StockSIP keeps you focused on your plan, reducing emotional biases that often lead to bad decisions.

d. Long-Term Growth: StockSIP is for the patient investor. Over time, the average cost of your stocks will likely be lower, and you can benefit from the potential growth of the stock market. Systematic Investment Plan offers a high return in the long run, this is because of the compounding effect (which I can say is "Eight Wonder of the World" according to Mr. Albert Einstein).

Who should consider StockSIP:

a. Beginners and Novice Investors: StockSIP is an ideal option for individuals who are new to the stock market and want to start investing with a disciplined approach. It helps beginners navigate the complexities of the stock market and avoid making impulsive decisions based on emotions or short-term trends.

b. Long-Term Investors: Investors with a long-term horizon and a goal of wealth creation should consider StockSIP. By making regular contributions over an extended period, they can benefit from the power of compounding and potentially witness significant growth in their investments.

c. Risk-Averse Investors: StockSIP is well-suited for risk-averse individuals who are cautious about the stock market's volatility. Through regular and systematic investments, they can reduce the impact of market fluctuations and achieve a balanced investment approach.

d. Goal-Oriented Investors: Those with specific financial goals, such as saving for a house, funding education, or building a retirement corpus, can benefit from StockSIP. The systematic nature of the investment plan allows them to work towards achieving these objectives over time.

e. Busy Professionals and Regular Cash Flow: StockSIP is an excellent choice for busy professionals who may not have the time to actively manage their investments. With automatic contributions, they can stay on track with their investment plan without the need for frequent monitoring. Additionally, individuals with a steady income can use StockSIP to allocate a fixed amount regularly, making it easier to manage their cash flow.

Discovery of StockSIP:

1. Go to the SKY App > Search

4. Select your Preferred Exchange and Qty and Frequency. We provide you 4 frequency option – Daily, Weekly, Fortnightly, Monthly.

5. Tap on Calendar option and select your preferred SIP start date from calendar displayed.

If you select date which is less than current date it will consider that start date of next month. If you select date which is current or greater than current date it will consider that start date of current month.

Example – Selecting Monthly

- Tap on Calendar option and select your preferred SIP start date from calendar displayed.

If you select a date which is less than current date it will consider that as the start date of the next month. If you select a date which is current or greater than current day it will consider that start date of the current month.

Example – Selecting 29th as start date

- Select preferred time.

Example – Selecting 9:30 am

6. SIP start date is shown on screen – 29th of Every Month at 9:30 with SIP starts from 29th Aug’23 onwards

7. Tap on Review Sip Order

8. Tap on Create SIP order on SIP confirmation screen

- Tap on your preferred option for further action.

11. You can modify your Qty, SIP Frequency.

- SIP Pause Successfully confirmation message will be displayed

• To Resume click on “Resume”
• To delete SIP click on “Delete”
  

Conclusion:

StockSIP is an excellent option for investors who seek to participate in the stock market with a disciplined and long-term approach. By regularly investing in selected stocks, investors can navigate market volatility and potentially reap significant rewards over time. It's crucial to remember that investing in stocks carries inherent risks, and past performance does not guarantee future results. Always do thorough research, seek advice from financial experts if needed, and stay committed to your investment strategy. With patience and persistence, StockSIP can be a powerful tool to achieve financial goals and build wealth in India's dynamic stock market.