1. What are Stock SIPs on Upstox Pro?
Similar to Mutual Fund SIPs (Systematic Investment Plans), Stock SIPs let you invest in your favourite Stocks regularly. You can either choose to invest weekly or monthly in a basket of up to 20 Stocks. The amount you select is debited automatically from your bank account and is invested in the Stocks of your choice.
2. What are the benefits of using Stock SIP Orders on Upstox?
Here’s how Stock SIPs can benefit you:
- Consistency & Compounding: Regular contributions help you stay disciplined and leverage the power of compounding for long-term wealth accumulation.
- Price Averaging (Rupee Cost Averaging): Benefit from market fluctuations to optimise your investments.
- Favourite Stocks: Build a diversified basket of stocks you believe in. You can add up to 20 stocks to a basket.
- Regular Investments: Choose to invest as low as ₹100 every week or month.
- Automatic Investment: Enjoy seamless contributions directly debited from your bank account.
- Flexible Management: Easily add, remove, or pause your Stock SIP anytime.
3. How to create Stock SIPs on Upstox Pro?
Setting up Stock SIPs involves 3 simple steps:
Creating a Stock SIP Order → Setting up Autopay → Paying the first instalment
Here’s a how-to for each of the steps:
Step 1 : Creating a Stock SIP Order
- Log into your Upstox account
- Head to the ‘Orders’ tab and go to SIP section
- Tap on ‘Create SIP’ and give it a name
- Select the SIP frequency between Weekly or Monthly
- Select the day (for Weekly) or the date (for Monthly) for your next SIP
- Click on ‘+Add’ to add Stocks to your SIP Order (up to 20 Stocks)
- Select the quantities for each Stock
- Click on ‘Create SIP’ and verify the details
- Select the Autopay mandate or ‘Setup a new Autopay’
- Click on ‘Create SIP’
Note: You can create a maximum of 50 Stock SIP Orders, each with up to 20 Stocks.
Step 2: Setting up Autopay
To set up an Autopay, you need to create a bank mandate as per the below steps:
- Head to the SIP order you created
- Click on Autopay mandate
- Click on ‘Setup a new Autopay’
- Select the payment method:
- UPI for up to ₹15,000
- Net Banking for up to ₹2,00,000
- Click on continue and you’ll be redirected to the UPI app or the Net Banking page
- Approve the mandate and you are done
Ensure that you have sufficient funds in your bank account for your SIP payments. If there’s insufficient balance in the case of Net Banking, you might have to pay bank charges.
Step 3: Paying the first instalment
After setting up the Autopay, you can pay the 1st instalment for your SIP Order and automate the process for future investments.
Note:
- Your SIP Order will be created even if you don’t set up an Autopay or pay the first instalment.
- After setting up the mandate, you’ll receive a notification before any SIP is executed to confirm the approximate amount.
- Autopay is a great way to be a consistent investor in the Stocks of your choice.
- Paying the first instalment ensures that you take the first step in your investment journey.
4. What scheduling options are available for Stock SIP?
You can schedule your SIP investments on a Weekly or Monthly basis based on your cash flow or investment plan. In case of a Weekly SIP, you need to select a day of the week and in case of Monthly SIP, you need to select the date.
5. How many Stocks can I add in a Stock SIP Order?
Each SIP Order can be personalised with up to 20 Stocks.
6. Why did my Stock SIP fail?
Stock SIP Orders might fail due to the following reasons:
- Insufficient funds in your bank account
- Stock has hit upper circuit and there’s no liquidity in the market
- The Stock has become illiquid due to regulatory changes
7. Are there any fees associated with using Stock SIP?
There are no additional fees/charges for Stock SIP apart from the brokerage.
8. How much amount will be debited for a Stock SIP Order?
The amount to be debited for a Stock SIP Order will be based on the previous day closing price of your Stocks + 5% extra.
This amount cannot exceed the mandate amount you have approved. In case the SIP amount exceeds the mandate amount, no auto-debit will take place.
If you want to ensure that your SIP Order is executed even when the Autopay fails, make sure to keep sufficient balance in your Upstox wallet.
Example:
Let’s say you have added 20 quantities of 3 Stocks in your Stock SIP Order. The previous day closing prices of these Stocks are ₹100, ₹200, and ₹300. Let’s say the approved mandate is for ₹15,000.
| Stocks | Previous Day closing prices | Quantity |
|---|---|---|
| A | ₹100 | 20 |
| B | ₹200 | 20 |
| C | ₹300 | 20 |
For the above order, the amount to be debited will be:
= (₹100X20 + ₹200X20 + ₹300X20) + 5%
= ₹12,000 + 5%
= ₹12,600
So for the above Stock SIP Order, ₹12,600 will be debited from your account.
Keep in mind:
- To ensure larger SIP Orders are executed without fail, we recommend setting up higher payment mandates.
- You can adjust your SIP Orders according to your convenience and to suit your payment mandate.
- If any of the buy order(s) in your SIP fails, the amount added from your bank account will remain in your Upstox wallet.
- The excess amount left after investing in your Stock SIPs will remain in your Uptox wallet. You can withdraw or invest this amount anytime easily.
9. Can I withdraw the amount added via Autopay?
Funds for your Stock SIP Orders are added via Autopay at 11AM on the day of execution. In case the added funds are not utilised for buying Stocks, you can withdraw them from the Upstox wallet easily.
10. Can I modify my Stock SIP once it is set up?
You can easily add/remove Stocks, pause your SIP, or delete your SIPs at any time. You can also change the schedule date for your SIP Orders. You have complete control over your investments and can adjust your Stock SIPs based on changing market conditions or investment objectives.
Any pause or modification in Stock SIPs will take place at 11 PM.
11. What are the cut-off timings for modifying my SIP Orders?
In case of UPI:
You can modify your SIP Orders until 9 PM, one day before the scheduled date.
Example:
Let’s say your SIP Order created using UPI is scheduled for 8 September 2024. You can modify this order until 9 PM of 7 September 2024.
In case of net banking:
You can modify your SIP Orders until 9 PM, two days before the scheduled date.
Example:
Let’s say your SIP Order created using net banking is scheduled for 8 September 2024. You can modify this order until 9 PM of 6 September 2024.
12. Can I delete an existing UPI or bank mandate?
Yes, you can delete your net banking mandate by visiting your bank portal. You can also delete your UPI mandate on the UPI app. Remember that this will stop Autopay for all linked SIPs.
You can continue investing in your SIP Orders even after deleting the mandate. To do that, simply maintain sufficient balance in your Upstox wallet.
13. Can I link multiple SIP Orders to the same mandate?
Yes, you can link multiple SIP Orders to the same mandate. In order to do that, simply create a new SIP order and in the Autopay section, select the pre-existing mandate you have approved earlier.
In case the Autopay mandate is approved using UPI, the maximum amount to be debited cannot exceed ₹15,000. In case you want to invest more, you need to create a new Autopay using net banking as explained in the above point.