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The stock SIPs lure of Zerodha, ICICI Direct and HDFC Securities: Should retail investors take the bait?

For do-it-yourself investors, the stock SIP facility can be a boon, if they know how to make the right choices

October 29, 2021 / 10:15 AM IST

Monthly systematic investment plans (SIP) in mutual funds have recently crossed the Rs 10,000 crore mark. Many investors also use the SIP route to buy stocks.

Brokerages such as ICICI Direct, HDFC Securities, IIFL and Zerodha offer equity SIPs. The market rally over the past 18 months has brought renewed interest among investors.

“Over the last couple of years, we have seen investor awareness on regular investing increase with a long term view on stocks,” says Suvajit Ray, Head-Product and distribution, IIFL Securities. Ray adds that brokerages have used the lockdown imposed due to COVID-19 pandemic last year to connect with existing as well as many new customers and brought them to the equity markets. Many, he says, have invested through equity SIPs.

IIFL Securities has seen a four-fold increase in enrolments in equity SIP over last one year. HDFC Securities, one of the large retail brokerages, also had a similar experience. The number of investors opting for stock SIPs rose by approximately 35 percent per annum over the last two years on a sizeable base. Amounts triggered or invested per month have risen faster, at 75 percent per annum over the same period.