Stock SIP: The Systematic Way to Invest in Stocks

In this article, we will discuss

Stock SIP

How to Invest in Stocks in a Systematic Way?

When it comes to the most convenient and systematic way to build a portfolio, the first thing that comes to the minds of investors is SIP. Over the years, this term has been related to mutual funds, which is an investment vehicle that pools money from investors to buy securities. But there is another way of methodically investing in stocks, of which a majority of investors are unaware. It is a stock SIP. Keep reading this article to find out more about this investment strategy.

What Is Stock SIP?

Stock Systematic Investment Plan or stock SIP is an investment strategy which enables investors to purchase equity shares through periodic instalments. By using this method, you can either buy a fixed quantity of shares or invest a set amount of money to purchase shares of any company on a periodic basis. Stock SIPs are also a viable alternative to making lump sum investments and one of the easiest ways to create a diversified portfolio.

Benefits of Stock SIPs

Stock SIPs come with several advantages that are making it a favourite among investors. Some of them are as follows:
  • High Flexibility

One of the biggest advantages of investing in stock SIPs with Samco is that you can start investing with an amount as low as ₹500. Moreover, you can pause your SIP for a period of time if need be and start again when you feel like it. Apart from this, you can modify your investment amount or the company whose shares you are buying at any point in time. These features make investing in stocks highly flexible, enabling even new investors to build their portfolios with ease.
  • Rupee Cost Averaging

When you invest in equity shares, sudden market movements can significantly affect your returns. However, stock SIPs mitigate this risk with the help of rupee cost averaging. It is a method by which the number of shares you get in your Demat account as per your periodic contribution gets adjusted based on the current asset price. So, if the market is down, you receive more shares, and when the asset prices rise, you receive less. This process helps deliver average returns even in times of volatility, thus making it a low-risk investment method.
  • Low Service Charges

When it comes to an investment method with low services, stock SIPs are one step ahead. Unlike mutual funds, they do not charge an exit load. Thus, you can sell your shares at any point in time, as per your strategy. Moreover, there are no annual maintenance charges. You only have to pay the depository participant and brokerage charges depending upon your opted plan.
  • Freedom of Creating a Diversified Portfolio

Another significant advantage of investing in stock SIPs is that you can create a diversified portfolio. This is because you get to choose the stocks and the frequency of investment you are comfortable with. Thus, you can build a portfolio as per your investment objective. For example, if you want to add stocks of a particular sector on which you are bullish or desire to have a mix of small, mid and large-cap companies in your portfolio, you have the complete freedom to do so.
  • Helps Fulfil Financial Goals 

Wealth creation from the stock market demands investing in a systematic manner. By opting for stock SIPs, you can invest periodically by starting small and scaling up your investment with time. This enables you to keep investing in a disciplined manner, thereby facilitating significant returns over your investment horizon.

How to Do SIP in Stocks?

You can start a stock SIP via Samco’s app by following a few simple steps:
  • Step 1: Open the Samco app and sign in to your account.
  • Step 2: Search for the stocks in which you want to start a SIP.
  • Step 3: Click on the stock and then select ‘Quote’.
  • Step 4: Tap on ‘Start SIP’.
  • Step 5: When the screen loads, you can see the SIP performance, annual returns, etc.
  • Step 6: Select ‘Start SIP’ and enter the number of shares you wish to purchase.
  • Step 7: Fill in the SIP start date, and check the 'I agree' section.
  • Step 8: Click on ‘Validate SIP’.
  • Step 9: Enter the OTP that you receive on your registered mobile number.
You have successfully started your stock SIP. However, to ensure that you invest in the SIP every month on the correct date, make sure to set up an auto debit mandate. You can consider doing this immediately after starting a stock SIP to further streamline your experience. The steps to set up the auto-debit mandate are as follows:
  • Step 1: Tap on ‘Setup Auto Debit for SIP’ option.
  • Step 2: Check your personal details and account type.
  • Step 3: Verify the mandate details, like the monthly amount and its start and end dates.
  • Step 4: Check the frequency of debit transactions and mode of authentication.
  • Step 5: Accept the terms and conditions and click on ‘Proceed’.
Your SIP auto debit mandate is set. Now, Samco will automatically deduct your monthly contribution from your bank account on the specified date.

What to Keep In Mind Before Investing in Stock SIPs?

There are certain things which you need to remember before starting a stock SIP. They are as follows:
  • Create an Investment Goal

There can be various reasons why you want to generate wealth. It may be for buying a house, your child’s education, creating a retirement fund, etc. Thus, before starting a stock SIP, it is essential that you create an investment goal. Doing so will enable you to make a proper investment plan, which will include your investment horizon, the amount you can contribute monthly and your expected returns. You can get an estimate of the latter by using Samco’s stock SIP calculator. Simply enter your monthly investment amount, expected return rate and time period. The app will show you the invested amount, estimated returns and the total value of your investment.
  • Select the Right Stocks

Now, to ensure that your investment helps fulfil your financial objectives, choosing the right stocks is crucial. This will take time and practice, along with a thorough analysis of the market trends. Experts advise looking at the business models and financials of companies before investing in their stocks. It is suggestible to leave aside startups and organisations with redundant or complex business plans. Avoiding companies with high debt is also a good practice. Furthermore, choosing the right industrial sector is very important. In this regard, you can analyse which segment currently has the potential for long-term growth and invest accordingly.
  • Monitor the Market Periodically

The stock market is ever-changing. Thus, it is important that you periodically monitor the market and make decisions on whether you need to adjust your portfolio in order to book gains. For instance, if you notice that a particular sector is showing signs of massive growth or exhibiting downward trends, you can buy or sell shares accordingly to keep your returns profitable.


Before investing in stock SIP, it is essential to choose a reliable and technologically enabled brokerage platform. Doing so will enable you to get the best options to systematically invest in stocks, and enjoy a seamless investing experience. Thus, when it comes to regular investments in stocks,Samco Stock SIP is the first choice of most investors. Just log in to the New-Gen Samco Mobile App. You can set up stock SIPs in just 3 simple steps and invest in 4 to 5-star rated stocks, thanks to our Stock Rating Matrix. Apart from this, you can compare historical data of different SIPs and choose schemes as per your investment objective. Furthermore, you can compare your portfolio performance with peers and other star fund managers, enabling you to ace the index! So what are you waiting for? Join Samco today and start your stock market journey with confidence. Click here to open your free Demat account with Samco now.

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