Equity SIP or Stock SIP Meaning, How it works, Benefits
Last updated August 22, 2026
This IPO News guide/article covers “Equity SIP or Stock SIP Meaning, How it works, Benefits”. The page is organized around equity sip meaning, how to do sip in equity stocks?, how does equity sip works?, how to buy stock sip?, stock sip benefits. IPO News presents the structured facts and tables in its own layout and wording.
Topics Covered
- Equity SIP Meaning
- How to do SIP in equity stocks?
- How does Equity SIP works?
- How to buy stock SIP?
- Stock SIP Benefits
- Who should do SIP in Equity Stocks?
- List of Stock Brokers offering Equity SIP or Stock SIP
- Is Equity SIP Good?
- Equity SIP Vs Mutual Fund SIP
- Final Note
- Zerodha Trade@20
- Frequently Asked Questions
- 1. How to do equity SIP in Zerodha?−
- Compare Stock Brokers Side-by-Side
Key Facts
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- Amount invested = 120 shares * 50/share = Rs 6000
- (120*50) – (120 * 40) = Rs 1200
- In the same scenario, if you have invested the same capital Rs 6,000 in the company via an equity SIP of Rs 3,000 per month.
- Total Equity SIP Investment = Rs, 6000
- Number of shares you own in SIP Mode= 60 + 75 = 135 shares
- Cost of holding per share = Rs 6000/135 shares = Rs 44.44/share
- Also, you must have an investment horizon of 5 years or more to do an equity SIP. A SIP for a short-term period can be risky and you may lose your capital.
- However, you need to systematically invest in the stock market through SIP for at least 5 to 7 years to expect good returns.
- Want to start your investment journey? Join India's Pioneer Discount Broker – ZERODHA – Free Delivery Trade, Maximum Rs 20 for F&O and Intraday, Free Direct Mutual Fund investment.
Data Tables
| Basis of difference | Equity SIP Investment | Price per share | Shares you get |
|---|---|---|---|
| 1st month | Rs 3000 | Rs 50 | Rs 3000/50 = 60 shares |
| 2nd month | Rs 3000 | Rs 40 | Rs 3000/40 = 75 shares |
| Total investment = Rs 6000 | Total shares you own = 135 shares |
| Basis of difference | Equity SIP | Mutual Fund SIP |
|---|---|---|
| Meaning | Equity SIP means investing in stocks. | Depending upon the type of mutual fund, the scheme may invest in different types of securities i.e., shares, debt securities, etc. In equity mutual fund SIP, investment is done in a basket of shares. |
| Diversification | When you select two or more stocks for SIP investment, you can diversify your portfolio to some extent. | Mutual funds held investment in number of companies across different industries and sector, thus, it offers diversification benefits. |
| Who should Invest | Individuals who have some experience and aware about the risk involved in the stock market investment can create equity SIP in shares. | Mutual fund SIP is the best for beginners or first-time investors to start their stock market investment journey. |
| Risk | High risk and selection of the right SIP stock is key to success. | Every mutual fund scheme is managed by professional experts called Fund Managers thus, SIP in mutual funds is less risky. |
| Investment horizon | SIP in stocks is recommended only, if you have a to long-term investment horizon. | There are different types of mutual fund schemes for short-term and long-term investment horizon. Even in the equity category, there are large cap, mid cap, multi cap, and small cap mutual funds. For investment horizon of 5 years, you can do SIP in large cap or multi cap funds, while SIP in mid cap and small cap mutual funds are recommended for long-term investment horizon say 7-10 years or even longer. |
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