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Everything You Need to Know About Stock SIP

Updated on: 3 Jul 2025

Investing in shares may sound complex, but it doesn’t have to be. A stock SIP makes it simple, affordable and consistent. It’s a beginner-friendly way to start your stock market journey. You can start without needing a big budget or perfect timing.

Keep reading to understand more about what is SIP in stock market and how to start one with confidence.

What is Stock SIP?

SIP meaning in stock market is simple. It’s very much like your regular SIP in mutual funds. In a mutual fund SIP, you buy fund units at the current Net Asset Value (NAV). But with a stock SIP, you buy shares of specific companies directly. Just like mutual fund SIPs, you can set it up weekly, monthly or even every few months. Pick a frequency that fits your liquidity requirements and goals.

For example, you can choose to invest ₹3,000 every month in shares of TCS or Infosys. Your stock SIP will automatically use that amount to buy as many shares as possible based on their current market price. This takes away the stress of timing the market and helps you grow your investments step by step.

Why Choose SIP in Stocks?

SIP in stock market is a popular tool. That’s because it offers several benefits, especially for beginners and long-term investors. Here’s why setting up an SIP in stock market is a smart move:

Start with small amounts: Unlike lump-sum investing, you don’t need a sizeable investment in one go. You can begin with as little as the cost of one share.
Removes the stress of timing the market: Many new investors try to buy at the ‘right time’. But market timing is hard, even for experts. With a stock SIP, you don’t need to worry about timing at all.
Helps with cost averaging: This is a simple but powerful concept. When prices are low, you buy more shares. And when prices are high, you end up buying fewer. Over time, this averages out your cost. This reduces the impact of short-term price movements.
Encourages disciplined investing: By setting up a SIP, you create a habit of investing. It becomes a monthly activity, just like paying a bill or saving for a goal.
Gives you full control: You choose the companies to invest in, how much to invest and how often. Unlike mutual funds, where a fund manager makes investment decisions on your behalf, a stock SIP works differently. Here, you stay in charge and choose the stocks you want to invest in.
Great for long-term growth: Stocks tend to perform well in the long run. By staying invested through SIPs, you can take advantage of this compounding effect.

Who Should Consider Stock SIPs?

A SIP in stock market is versatile. Here are a few profiles that benefit most from stock SIPs:

First-time investors: If you’re new to the stock market and want a simple way to begin, a stock SIP is a perfect option.
Young professionals: Just started earning and want to build wealth? A SIP helps you invest in line with your monthly salary.
Busy individuals: Don’t have time to monitor markets daily? Stock SIPs let you invest automatically and stress-free.
Long-term savers: If your goal is wealth creation over 5 to 10 years, stock SIPs help you grow steadily without needing big funds upfront.
Experienced investors: If you prefer choosing your own stocks instead of relying on fund managers, stock SIPs offer that control. The best part is that they also help you stay consistent with your investments.

How to Set Up a Stock SIP Plan?

Setting up a stock SIP is quite easy. You just need a trading account and access to a broker or investment app that supports this feature.

Here’s how to do SIP in stocks:

Open a trading and demat account: You’ll need this to buy and hold shares. Most brokers offer a simple online account opening facility.
Choose your broker or platform: Make sure they offer the stock SIP option. Most leading platforms like Zerodha, Groww and Upstox have this feature.
Pick your stocks: Do some research. Choose companies that are financially strong and have good long-term growth prospects.
Set the amount and frequency: Decide how much you want to invest and how often. You can opt for monthly, fortnightly or even quarterly transactions.
Automate the SIP: Most platforms let you schedule the SIP. Once set, the amount will be debited automatically. These shares will then be added to your portfolio on the scheduled date.

It’s a practical way to invest, especially when you don’t have a lump sum saved. With stock SIPs, you can build wealth steadily without market timing stress.

However, life can be unpredictable. But when emergencies come up, stopping your SIP isn’t the only option. You can always consider a Fibe Personal Loan instead. You can borrow up to ₹5 lakhs with no collateral. The process is fully digital and you get up to 36 months to repay. It’s a simple way to manage urgent needs while staying on track with your investments.