Through SIP, you can invest in installments. But it does not only invest in mutual funds. Rather, you can also invest in your favorite shares through SIP. For this, you will need a demat account.

Along with this, you have to decide on a fixed amount and period like a mutual fund SIP. The difference between investing through mutual funds and investing in shares yourself under SIP is that here you are not restricted to the shares selected by the mutual fund agent.

Through a demat account, you can easily invest in your favorite shares through SIP.

How to invest in shares through SIP?

Step 1- Open a demat account

First of all, you have to open a demat account in any brokerage app. Many brokerage apps give the option of investing through SIP. To open an account, you have to submit some important documents like an Aadhaar, ration card, PAN card, ID proof, bank account, etc. online.

Step 2- Try to bring diversification to the portfolio

After this, select the shares in which you want to invest. Try to keep your portfolio diversified. This will also reduce your risk. At the same time, for more diversification, you can also choose ETF and debt funds. This will further reduce the risk. Diversification reduces the impact of stock market fluctuations.

At the same time, the risk also reduced if you invest for a long time.

Step 3- Select a fixed amount and period

Then go to the investment section of the shares you have selected. If the brokerage app gives SIP

Option, then it will be visible in this section. After this, choose a fixed amount and a fixed period.

Link the bank account as well. After filling all the details, the SIP will be set.

Important things related to SIP

You can increase the amount of the amount selected in SIP whenever you want. Along with this, the option to increase the number of shares is also available.

In this way, you have to pay transaction and brokerage fees for investing in shares.

Along with this, you will also have to pay capital gain tax while selling. This tax depends on the time after which the shares are being sold.

At the same time, to reduce market risk, you can start with a small amount.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.