Introducing updated Stock SIP experience on Kite web

Building a long-term portfolio is not only about choosing what to invest in. It also requires investing consistently over time.

In practice, every investment involves deciding when to invest, calculating how many shares fit within your budget, placing orders, and ensuring that sufficient funds are available. When markets become volatile, it can also be tempting to postpone an investment or skip it altogether.

A Systematic Investment Plan (SIP) helps make this process more systematic by allowing you to schedule recurring investments in the stocks, ETFs, or bonds you want to accumulate over time.

Kite already supports Stock SIPs, but the earlier process required you to first create an order basket and then link it to a SIP schedule. You also had to ensure that sufficient funds were available in your trading account before every installment.

We have now updated the Stock SIP experience on Kite web to make it easier to create, fund, and manage your SIPs.

With the updated experience, you can:

• Add instruments directly while creating a SIP.
• Choose between quantity-based and amount-based SIPs.
• Divide your investment amount across multiple instruments.
• Lock the allocation assigned to an instrument.
• Automate funding for amount-based SIPs using UPI Autopay.

Here’s how the new Stock SIP experience works

To create a Stock SIP on Kite web, go to Orders, select SIP, and click on New SIP.

You can also start one directly from your watchlist or holdings by opening More options for an instrument and selecting Start SIP.

You can choose whether the SIP should run daily, weekly, or monthly, select the date and time at which the orders should be placed, and decide how long it should continue.

Once the schedule is set, you can search for and add the stocks, ETFs, or bonds in which you want to invest.

Stock SIPs can be set up in two ways: quantity-based or amount-based.

Quantity-based SIPs

In a quantity-based SIP, you specify how many units of each instrument should be purchased during every instalment.

Kite displays the approximate amount required based on the latest available market prices. Since prices can change, the actual amount required when the SIP runs may be different. You must therefore ensure that sufficient funds are available in your trading account before the scheduled time.

UPI Autopay and the option to lock instrument weights are not available for quantity-based SIPs.

Amount-based SIPs

In an amount-based SIP, you specify how much you want to invest during every instalment. Kite then estimates how many units of each instrument can be purchased within that amount.

When you add multiple instruments, you can decide how the total investment amount should be divided among them. For example, you could allocate 60% of the amount to one stock and 40% to another.

You can also use Split equally to divide the amount evenly across all the instruments in the SIP.

The weight assigned to a particular instrument can be locked. Once locked, its allocation remains unchanged even if you modify the overall SIP amount or adjust the weights of the other instruments.

Since fractional units cannot be purchased, the amount invested may be slightly lower than the amount allocated. The estimated quantities may also change based on the market prices when the orders are placed.

Automating SIP funding with UPI Autopay

For amount-based SIPs, you can use UPI Autopay to automatically transfer the SIP amount from your linked bank account. This removes the need to manually add funds to your trading account before every instalment.

To set it up, enter your bank and UPI details and approve the Autopay mandate in your UPI app.

Once the mandate is active, the amount is debited from your bank account one day before the scheduled SIP date so that the funds are available when the orders are placed.

Managing a Stock SIP

You can modify a Stock SIP whenever your investment plan changes.

From the SIP page, you can change its schedule, duration, payment mode, investment amount, quantities, and order settings.

You can also:

• Pause and resume a SIP.
• Skip the next instalment.
• Delete the SIP.

How Stock SIP orders are executed

By default, Stock SIP orders are placed as market orders with market protection enabled. Market protection applies a price range to the order to limit the effect of sudden price movements.

You can also choose a limit order. However, the order may remain unexecuted if the instrument is not available at the price you specify.

Stock SIP orders are placed only on trading days. If a scheduled date falls on a trading holiday, the order is placed on the next trading day.

What happens to existing Stock SIPs?

If you created a Stock SIP before this update, there is nothing you need to do. Your existing SIP will continue to run according to its current schedule.

Older SIPs with multiple schedules cannot be modified directly. To make changes, you must first remove the additional schedules.

The updated Stock SIP experience is currently available on Kite web and will be available on the Kite mobile app soon. Until then, SIPs created on Kite web may have limited editing options when accessed through the app.