Equity SIP and Equity SWP Plans Explained (e-SIP, e-SWP)

Published on Sunday, June 21, 2020 by Team

Equity SIP and Equity SWP Plans Explained (e-SIP, e-SWP)

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Equity SIP/SWP Plan allows you to buy or sell in stock at a regular interval in a set quantity or amount. It is similar to Mutual Fund SIP but instead of investing in MF, e-SIP invests in a stock selected by the investor.

Equity SIP (e-SIP) is short for Equity Systematic Investment Plan. It is a disciplined investing approach that allows the investor to buy the shares of a selected company at a regular interval in an automated way.

Equity SWP (e-SWP) is short for Equity Systematic Withdrawal Plan. It allows an investor to sell holdings from his demat account in a pre-specified quantity and time interval.

The e-SIP and e-SWP is an automated investment. You just have to place one order and 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 should have funds available in your Trading Account for these orders to get executed. You cannot link your bank account to withdraw funds every time 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 risk of a sudden dip in the price of the share.
  • No need to track and wait for the right time to buy the share.
  • Only 1 order is required. No repeated orders needed.
  • No separate account is required to avail this facility. You just need a Trading and Demat account.
  • It lowers down your average cost of acquisition as you buy at peak and low price points.

Equity SIP Example

If you would like to buy SBI shares of Rs 10,000 every month for the next 12 months. You could place an Equity SIP request for this and your broker will keep buying this stock every month on set day next the 1 year. You don't have to place 12 different orders one for each month.

Equity SIP Brokerage

The brokerage for e-SIP is same as the brokerage of Equity Delivery (Cash & Carry) segment. Each trade of Equity SIP is one buy order.

Edelweiss Broking Equity SIP

Edelweiss Broking offers e-SIP and e-SWP to all its customers through its online trading platforms for free.

If you have chosen the Edelweiss Lite Plan, you will be charged brokerage at flat Rs 10 per executed order. This means every-time shares are bought, you will pay flat Rs 10 brokerage.

If you are using Edelweiss Elite Plan, you will pay 0.30% brokerage on the transaction value. This means if you have an e-SIP of Rs 10,000 per month, you will pay Rs 300 brokerage for every SIP transaction.

A similar brokerage is applicable for sell orders in the case of the e-SWP.

Steps to place Equity SIP Order in Edelweiss

  1. Login to the Edelweiss website or mobile app.
  2. Click on 'Buy / Sell' in the top right.
  3. Click on 'Place Order'.
  4. Search for desired equity in the search bar.
  5. Click on the 'Buy' button.
  6. Click on the 'Recurring (SIP)' tab.
  7. Enter 'No. of Shares' or 'Amount'.
  8. Enter 'Frequency, Start Date and Total Period in Months'.
  9. Click on the 'Place Order' button.
  10. Review and confirm your order.
  11. Check your order status in the order book.

Edelweiss Equity SIP Terms and Conditions

  • Only Resident individuals and HUF will be eligible for this product.
  • There is no change in the brokerage rates for Equity SIP/ Equity SWP transactions.
  • Equity SIP and SWP requests can be placed for only one security at a time.
  • Equity SIP Request can be placed at any time during the day and even after market hours.
  • The start date should be at least 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 is a trading holiday then the order will be placed on the next trading day.

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