Difference between Stock SIP and Mutual Fund SIP?

Zerodha (Trade with the best stock broker)

Mutual Fund SIP vs Equity SIP

Mutual Fund SIP Stock SIP

Mutual Fund SIP is investing a set amount at regular intervals in a particular MF scheme.

Stock SIP is investing a fixed amount in a stock/basket or buying a fixed number of stocks at pre-set frequency.

Comparatively low risk as fund manager decides the allocation based on their research.

High Risk as generally investors need to decide the stock.

Moderate to High returns.

Potential of very high returns.

Suitable for new investors.

Suitable for experienced investors.

Investors can invest in different asset types

Investment restricted only to Equity asset class.

Low trading cost.

High trading cost.

Demat account may not be mandatory.

Mandatory Demat account required

Lock-in period of 3-5 years except for non-ELSS Open Ended Funds.

No Lock-in Period


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