SIP in Stock Market

So far investors have been buying shares only by placing orders on day to day basis. In other words, there has been no option to automate this share purchase just like the way we do it in Mutual funds.

Now Investors who want to gradually accumulate shares over a period of time, on a month on month basis can be happy. EASY Investments along with Motilal Oswal Securities has launched an innovative Systematic Investment Plan in Equity Shares.

Following are its highlights:
• You can choose from a choice of 300+ shares to buy on regular interval say weekly or monthly basis.
• You can buy shares on any specific date like 1st of each month or 15th of each month to buy these shares.
• Shares would automatically be bought and credited to your demat account.
• Payment against these purchase of shares can either be an ECS debit to your bank account or debited to your running ledger account
• You can invest from a minimum of Rs.2000 and in multiples of Rs.500.
• You need to opt for minimum SIP period of 12 Months
• There is no lock in period against this purchase of shares. You are free to sell these shares at any time you want.
• This Equity SIP is an exclusive offer for clients who have their demat and trading account with Motilal Oswal Securities Ltd.
Advantages of Equity Share SIP:
• In stock market you can place orders that is valid for a day. In short, your orders are “Good for the Day”.
• With this Equity SIP in place, your order may be “Good for Year(s)”.
• Once the SIP is set, the purchase happens automatically for the stipulated period.
• There is no need for the investor to keep watching their stock and buy it in regular intervals.
• Since fluctuation is a normal feature of stock market, the selected share is bought at different price over a period of time. For instance @ Rs.100, Rs.5000 buys 50 shares; at Rs.200, Rs.5000 buys only 25 shares only and at Rs.50 per share Rs.5000 buys as 100 shares. That means you buy more share when price is less and buy less share when price is more.
• If someone wants to buy gold for Rs.10000 every month for next three years, this option becomes much easier. Option for Gold ETF SIP would take care of all your problem.

Below mentioned SIP example summarizes all these benefits. While the one time investment made on 1st July 2009 is yet to break even, SIP has already made profits.



To sum up, Small drops make a big ocean. A monthly accumulation of 100 shares over a period of one year would result in 1200 shares in your Demat. Each and every investor needs to make use of this innovation to buy stock of his/her choice. And donot forget - SIP is a safe way to surf in rough sea of stock market.