What are SIPs?
A systematic investment plan (SIP) is a method of investing in which investors make regular, equal payments. SIPs enable investors to save on a regular basis with a smaller sum of money. Most SIPs demand regular contributions to the plans, whether those payments are made weekly, monthly, or quarterly. SIPs are considered passive investments because you continue to invest in them regardless of how well they perform.
Why SIPs for smallcase?
It's all about time in the market, not timing the market, as they say. A systematic investment strategy instils discipline while avoiding emotion. This investing technique works with small amounts of money, putting less capital at risk. A consistent investing strategy like this one shields you from market volatility.
Smallcases are expertly managed stock portfolios, whereas SIPs are excellent passive investment vehicles. The combination of the two can delight your capital investments. The consistency of SIPs, combined with the low fees of smallcase, can be extremely beneficial for a smooth ride in the markets. Set up an Auto-SIP and then forget about it while your money quietly compounds.
SIPs and Smallcase
On smallcase, the SIP frequency is set to monthly by default, and the amount is the minimum SIP amount for that smallcase. You can change your SIP configuration whenever you want. In smallcases, you can start a SIP in two ways:
When making a new investment, select Monthly SIP
Choose a smallcase from your investments and click Start SIP.
When you confirm the investment amount while purchasing a smallcase, a popup will appear with the 'Monthly SIP reminder' option selected. Simply click 'Buy & Start SIP,' and a SIP due reminder will be sent to you automatically. Starting a SIP on smallcase is simple and painless.
Auto-SIP is also supported by Smallcase. This feature varies from broker to broker. As an example, suppose your broker is Zerodha. Simply select Auto-SIP mode from the start-SIP menu, and your order will be processed automatically. The funds will also be directly deducted from your Kite trading account.
SIP Minimum/Maximum Amount
If the minimum investment amount for the smallcase is greater than Rs. 10,000, you can begin a SIP with a smaller amount. The SIP amount is always less than or equal to the minimum investment amount in cases where the minimum investment amount is less than Rupees 10,000.
How Does This Work?
Smallcase's proprietary algorithm intelligently calculates the minimum SIP amount. In the case of SIPs, smallcase does not purchase all of the stocks at once, as it does the first time you invest in the smallcase. Instead, for SIPs, it divide the purchase into multiple SIPs. Choosing individual stocks to be purchased in each SIP instalment based on the logic of the algorithm. Since the number of stocks purchased is reduced, the SIP amount can now be less than the smallcase's minimum investment amount.
You can begin investing systematically by setting up SIP reminders. This is significant in terms of your long-term objectives. On each due date, smallcase will send you an email, as well as a WhatsApp and push notification, allowing you to easily pay your SIP instalment. You have the option of determining the amount of your SIP. If you want to begin with small SIP amounts in your invested smallcase, you can. Increase the SIP amount as you become more comfortable.
You can start with Rupeeting's Monopolies portfolio, which invests in companies that are market leaders in their respective industries and sectors. You can build your portfolio and own these behemoths, one stock at a time with an SIP.
Head over to our collection of Rupeeting's smallcases and choose from a wide range of strategies that make you money!