It's an undisputed fact that, in the long run, equities generally deliver good returns. Even if you are a conservative investor, stocking up on blue chips can garner you a good profit over a decade.
The only problem is that such stocks are usually expensive. For instance, if you want to buy 10 stocks of SBI at Rs 2,600 each, you will have to pay Rs 26,000, an amount you might not have for investing at one go.
ICICI Securities is now easing the path for you through its Equity Systematic Investment Plan. Under this scheme, you can buy stocks in instalments, say one share a month. This means that paying Rs 2,600 a month will not pinch you as much.
You can decide the amount you need to invest as well as the frequency, that is, either weekly or monthly. The stock will be bought at the price for that day. The SIPs can be amount-based, where you decide on a fixed amount of money to invest, or quantity-based, where the number of shares you want to buy is defined.
However, if you feel that the market has risen too high and that the stock is too expensive, you can cancel the systematic plan any time. Currently, this facility is available only on select scrips.
