Equity Systematic Investment Plan (Equity-SIP)
Equity Systematic Investment Plan is a SIP in equities, which enables you to invest regularly a small amount or buy pre-determined quantity of shares over defined period of time. You can make periodic investment in a disciplined manner with no need of timing the market. Small, periodic investments (daily, weekly or monthly) in place of a big one-time investment to counter price fluctuations or place your investment budgets in stocks holding a long-term potential
Features
- Reduces Risk because of Rupee Cost Averaging
- SIP can be started with very small amount of money
- Timing the market is not necessary
- Long term financial goal can be aligned with SIP
- Power of compounding
- Simple and Disciplined approach
- Flexible options in term of amount based or quantity based equity SIP
- Flexibility to reshuffle your investment pattern or stock selections
Benefits of Karvy E-SIP:
- Order can be placed directly through KarvyOnline Mobile app or KarvyOnline trading platform
- Get direct access to your investment through app or visiting www.karvyonline.com
- Exclusive research based recommendation – Valueinvest & Wealth Maxmiser.
- Investment can be started just by opening Trading and Demat Account
- No additional charges applicable for eSIP apart from brokerage.
- Get trades confirmation through SMS and E-mail.
- No need to track market movement every time.
- No Entry/Exit load.
Illustration of Equity SIP made in ABC Ltd.
| Month | Price | Quantity | Amount Invested Every Month |
| January | 800 | 31 | 25000 |
| February | 750 | 33 | 25000 |
| March | 700 | 36 | 25000 |
| April | 650 | 38 | 25000 |
| May | 600 | 42 | 25000 |
| June | 550 | 45 | 25000 |
| July | 500 | 50 | 25000 |
| August | 450 | 56 | 25000 |
| September | 400 | 63 | 25000 |
| October | 350 | 71 | 25000 |
| November | 300 | 83 | 25000 |
| December | 350 | 71 | 25000 |
| January | 400 | 63 | 25000 |
| February | 450 | 56 | 25000 |
| March | 500 | 50 | 25000 |
| April | 550 | 45 | 25000 |
| May | 600 | 42 | 25000 |
| June | 650 | 38 | 25000 |
| Total | 914 | 450000 |
Scenario 1: As you have invested every month you have purchased total unit of 914 due to Rupee cost averaging
| Amount Invested = | 450000 |
| Current value of Investment | 593947 |
| Profit | 143947(32%) |
Scenario 2: If you had made a lumpsum investment of 450000 at market price @800 you would have purchase total unit of 562.5
| Amount Invested = | 450000 |
| Current value of Investment | 650*562.5(365625 ) |
| Loss | 84375 (19%) |
Follow the below steps to place eSIP orders:
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1Visit http://karvyonline.com/
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2Go to My Karvyonline > Trading > Login with your user id & password
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3Visit Equity SIP, click on Equity SIP
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4Select certain fields from the dropdown & enter the details
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5Click on Submit