Plan your investment
What Our Plans Cover
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Periodic purchase of chosen stocks
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Monthly
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Automatic execution through the br...
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Direct holding in your demat accou...
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Dividends and corporate actions re...
Who Can Consider This Plan?
- Indian resident individual, HUF, trust or company
- NRIs, through a portfolio investment scheme account
- PAN and completed KYC
- A demat account with a registered depository participant
- A trading account with a registered broker
What May Not Be Covered?
- Diversification, unless you build it yourself across many stocks
- Any protection against a chosen company underperforming
- Professional management of the selection
- Any guarantee of return
- Automatic rebalancing between holdings
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading investments companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced investments professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
A stock SIP invests a fixed amount into chosen stocks at regular intervals. It applies the discipline of a mutual fund SIP — automatic, unemotional, averaged over time — to a portfolio you select yourself.
The discipline transfers; the diversification does not. A mutual fund SIP buys forty or fifty companies through one instruction. A stock SIP buys the three or five you chose, which means the averaging happens across a much narrower base and a mistake in selection is not diluted by anything.
It suits an investor who has already decided what they want to own for the long term and wants to accumulate steadily rather than in lumps. It does not turn stock selection into a solved problem, and it should not be mistaken for doing so.
Who should consider it
Investors with conviction in a small number of large, established businesses they intend to hold for years. Investors accumulating positions gradually from monthly income. Anyone who wants direct ownership rather than fund units.
Investors without a researched view on specific companies are better served by a mutual fund SIP, which provides the same discipline with genuine diversification.
Benefits
- Applies automated discipline to direct stock accumulation
- Averages the purchase price across market levels
- Direct ownership, with dividends and voting rights
- No fund expense ratio on an ongoing basis
- Builds a position gradually from regular income
- Full control over what you own and when you sell
What is included, and what is not
Read the right-hand column first. It is the one that tends to surprise people later.
Included
- Periodic purchase of chosen stocks
- Monthly, fortnightly or weekly frequency
- Automatic execution through the broker
- Direct holding in your demat account
- Dividends and corporate actions received directly
Not included
- Diversification, unless you build it yourself across many stocks
- Any protection against a chosen company underperforming
- Professional management of the selection
- Any guarantee of return
- Automatic rebalancing between holdings
Terms vary between providers and between plans from the same provider. The offer document you receive is what governs — we will walk you through it before you commit.
How it works with us
- 1 We establish whether direct equity suits you at all For many investors a diversified fund does the same job with less to go wrong. That conversation comes before anything else.
- 2 Allocation set before any stock is discussed How much of your portfolio belongs in direct equity, and what stays in funds and fixed income. Position sizing prevents most permanent damage.
- 3 Demat and trading account set up properly KYC, nomination and the mandates. Done once, correctly, so nothing stalls when you want to transact.
- 4 Research shared, decisions left with you We provide analysis and context. We do not provide tips, and we will not tell you a stock will go up.
- 5 Reviewed against the thesis, not the price The question at review is whether the reason you bought still holds — not whether the price has moved since.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Averaging into a poor company simply accumulates a poor position more efficiently. The discipline does not fix the selection.
- Build across enough stocks to be genuinely diversified, or accept that this is a concentrated position and size it accordingly.
- Brokerage on many small transactions adds up. Check the total cost against a fund's expense ratio before assuming direct is cheaper.
- Review the thesis, not the price. If the reason you bought a company has changed, that matters more than what the share has done.
- Equity investments carry market risk. Individual stocks can and do fall permanently, and past performance does not indicate future returns.
Documents required
- PAN card, mandatory for all securities transactions
- Aadhaar or other identity proof
- Address proof
- Bank account proof — cancelled cheque or statement
- Income proof, for derivatives segment activation
- Recent passport-size photograph
- Signature specimen and in-person verification
Frequently Asked Questions
Is a stock SIP better than a mutual fund SIP?
It gives you direct ownership and no expense ratio, and it gives you no diversification and no professional management. A fund SIP buys forty or fifty companies through one instruction; a stock SIP buys the ones you picked. If you have a researched view on specific businesses, this is a reasonable structure. If not, the fund does the job better.
How many stocks should I run this on?
Enough that no single company can do permanent damage to your portfolio — which for most investors means considerably more than three. If you cannot build that breadth, accept that this is a concentrated position and size it as one.
Does averaging protect me if the stock falls?
It reduces your average cost, which helps if the company recovers. If the business is permanently impaired, averaging simply means you own more of something that is not coming back. The discipline of a SIP does not substitute for judgement about the company.
Are the costs lower than a mutual fund?
There is no ongoing expense ratio, but each purchase attracts brokerage and statutory charges. On small monthly amounts across several stocks, those transaction costs can exceed a fund's expense ratio. Work out the total before assuming direct is cheaper.
When should I sell?
When the reason you bought no longer holds — not when the price moves. Reviewing against the original thesis rather than against the current quote is the single most useful discipline in direct equity. All equity investments carry market risk.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.