Equity SIP/SWP Plan allows you to shop for or sell available at a daily interval during a set quantity or amount. it’s almost like open-end fund SIP but rather than investing in MF, e-SIP invests during a stock selected by the investor.
Equity SIP (e-SIP) is brief for Equity Systematic Investment Plan. it’s a disciplined investing approach that permits the investor to shop for the shares of a specific company at a daily interval in an automatic way.
Equity SWP (e-SWP) is brief for Equity Systematic Withdrawal Plan. It allows an investor to sell holdings from his demat account during a pre-specified quantity and interval .
The e-SIP and e-SWP is an automatic investment. you only need to place one order and therefore the system will keep buying or selling the set quantity of a stock at the pre-decided frequency i.e. monthly.
Note: For e-SIP, you ought to have funds available in your Trading Account for these orders to urge executed. you can’t link your checking account to withdraw funds whenever an eSIP order gets executed.
Equity SIP Benefits
- It is a disciplined investing approach.
- Both buy and sell transactions are allowed.
- You can place a quantity-based or amount-based SIP request.
- Minimizes the danger of a sudden dip within the price of the share.
- No got to track and await the proper time to shop for the share.
- Only 1 order is required. No repeated orders needed.
- No separate account is required to avail this facility. you only need a Trading and Demat account.
- It lowers down your monetary value of acquisition as you purchase at peak and low price points.
Equity SIP Example
If you’d wish to buy SBI shares of Rs 10,000 monthly for subsequent 12 months. you’ll place an Equity SIP request for this and your broker will keep buying this stock monthly on set day next the 1 year. you do not need to place 12 different orders one for every month.
Equity SIP Brokerage
The brokerage for e-SIP is same because the brokerage of Equity Delivery (Cash & Carry) segment. Each trade of Equity SIP is one buy order.
Edelweiss Broking offers e-SIP and e-SWP to all or any its customers through its online trading platforms for free of charge .
If you’ve got chosen the Edelweiss Lite Plan, you’ll be charged brokerage at flat Rs 10 per executed order. this suggests every-time shares are bought, you’ll pay flat Rs 10 brokerage.
If you’re using Edelweiss Elite Plan, you’ll pay 0.30% brokerage on the transaction value. this suggests if you’ve got an e-SIP of Rs 10,000 per month, you’ll pay Rs 300 brokerage for each SIP transaction.
A similar brokerage is applicable for sell orders within the case of the e-SWP.
Steps to put Equity SIP Order in Edelweiss
- Login to the Edelweiss website or mobile app.
- Click on ‘Buy / Sell’ within the top right.
- Click on ‘Place Order’.
- Search for desired equity within the search bar.
- Click on the ‘Buy’ button.
- Click on the ‘Recurring (SIP)’ tab.
- Enter ‘No. of Shares’ or ‘Amount’.
- Enter ‘Frequency, Start Date and Total Period in Months’.
- Click on the ‘Place Order’ button.
- Review and ensure your order.
- Check your order status within the order book.
Edelweiss Equity SIP Terms and Conditions
- Only Resident individuals and HUF are going to be eligible for this product.
- There is no change within the brokerage rates for Equity SIP/ Equity SWP transactions.
- Equity SIP and SWP requests are often placed for less than one security at a time.
- Equity SIP Request are often placed at any time during the day and even after market hours.
- The start date should be a minimum of T+1 days with T being the date of placing the e-SIP request.
- The e-SIP Orders get executed between 10-10:15 AM.
- If the set date may be a trading holiday then the order are going to be placed on subsequent trading day.