How to Create a Stock SIP in Zerodha: A Complete Step-by-Step Guide

In recent years, Stock SIPs (Systematic Investment Plans) have emerged as a smart and disciplined way for retail investors to build long-term wealth in the equity market. Unlike mutual fund SIPs that invest in a basket of stocks, stock SIPs allow you to invest a fixed amount in individual stocks at regular intervals. Zerodha, being India’s most trusted and widely used discount broker, offers an easy and effective platform to set up your stock SIPs.

In this guide, we’ll walk you through how to create a stock SIP in Zerodha—right from understanding the concept to executing your plan using Zerodha’s Kite and Console platforms. Whether you're a beginner or someone looking to automate your investments, this article has got you covered.

📘 What is a Stock SIP?

A Stock SIP is an investment strategy where you purchase a fixed quantity or amount of a stock at regular intervals—weekly, monthly, or quarterly—just like mutual fund SIPs.

➤ Unlike lump-sum investing, SIPs smooth out market volatility
➤ Encourages rupee cost averaging, helping reduce the impact of market timing
➤ Instills investment discipline and long-term wealth creation

For example, if you decide to invest ₹2,000 every month in Infosys shares, a stock SIP automates this purchase, letting you accumulate shares gradually.

🔍 Why Choose Zerodha for Stock SIPs?

Zerodha is India's largest stock broker with over 1 crore clients and a reputation for low-cost trading and robust platforms. Here’s why Zerodha is ideal for stock SIPs:

➤ Zero brokerage on delivery-based investments
➤ Intuitive and clean interface via Kite
➤ Comprehensive SIP tools through Zerodha Console
➤ Access to advanced charting, reports, and real-time data

💡 Fun Fact: Zerodha handles over 15% of India's daily retail trading volume, making it a reliable and proven platform.

🛠️ How to Create a Stock SIP in Zerodha: Step-by-Step

Zerodha does not currently offer automatic stock SIP execution (like mutual fund SIPs), but you can manually schedule SIPs using features available in Kite and Console.

✅ Step 1: Choose Your Stocks

Before creating a stock SIP, research and finalize the stocks you want to invest in. Prioritize:

➤ Large-cap or fundamentally strong companies
➤ Stocks with consistent earnings and dividend history
➤ Companies with low debt and high ROE (Return on Equity)

📈 Example SIP-worthy stocks: Infosys, TCS, HDFC Bank, Asian Paints, Reliance Industries

Use tools like Tickertape, Screener.in, or Zerodha Varsity to evaluate stock fundamentals.

✅ Step 2: Log in to Zerodha Console

Visit console.zerodha.com and log in with your Zerodha credentials. This is the dashboard that lets you manage reports, portfolios, and investments.

✅ Step 3: Go to ‘Stock SIP’ Section

In the Zerodha Console dashboard:

➤ Click on the ‘Portfolio’ tab
➤ Select ‘SIPs’ from the dropdown
➤ Click on ‘Create new SIP’

Note: If you don’t see this option, Zerodha might be offering this feature only in select phases. You can use an alternative tool like Google Calendar or Task Scheduler as reminders.

✅ Step 4: Fill in SIP Details

Now configure your SIP preferences:

➤ Stock Name – Type and select the stock (e.g., INFY)
➤ Frequency – Choose Weekly, Monthly, or Quarterly
➤ Investment Type – Quantity-based or amount-based SIP
➤ Start Date – Select your SIP start date
➤ Duration – Set a fixed number of SIPs or choose ‘until further notice’

This step defines your SIP schedule and amount. Once confirmed, Zerodha will send a reminder or display it in your dashboard to execute it manually.

✅ Step 5: Execute SIP Orders on Schedule

Zerodha does not auto-debit or auto-execute SIP orders for individual stocks (as of now). You need to manually:

➤ Log in to Zerodha Kite on your scheduled SIP day
➤ Go to the selected stock
➤ Place a CNC (Cash and Carry) buy order
➤ Use the SIP amount or quantity you set earlier

Pro Tip: Use the ‘Basket Order’ feature on Kite to add multiple stocks and execute your SIPs in a single click.

🧮 How Does Stock SIP Help? (Example)

Suppose you invest ₹2,000 per month in TCS:

➤ In January, TCS is ₹4,000, you buy 0.5 shares
➤ In February, price drops to ₹3,800, you buy 0.53 shares
➤ In March, price rises to ₹4,100, you buy 0.48 shares

Over time, your average cost smooths out and reduces volatility impact. This method is called rupee-cost averaging.

📊 Tracking Your Stock SIPs in Zerodha

To check your SIP performance and upcoming orders:

➤ Go to Console > Portfolio > SIPs
➤ View stock-wise returns and total investment
➤ Export data or link to Google Sheets for deeper analysis

You can also use apps like Smallcase (integrated with Zerodha) to manage SIPs in curated stock baskets.

🧠 Expert Tips to Optimize Your Stock SIP Strategy

➤ Start small, increase investment as income grows
➤ Reassess stock fundamentals every 6–12 months
➤ Avoid low-volume, highly volatile penny stocks
➤ Align your SIPs with long-term goals like retirement, buying a house, or children’s education

📌 Did You Know? Long-term SIPs in stocks like Asian Paints or HDFC Bank have delivered CAGR returns of over 15–20% over a decade.

❌ Common Mistakes to Avoid

➤ Skipping SIPs due to short-term market volatility
➤ Chasing hot tips or momentum stocks without research
➤ Investing in too many stocks—focus on a manageable basket (5–10 max)
➤ Ignoring performance tracking or blindly continuing underperforming SIPs

🏁 Conclusion: Is Stock SIP in Zerodha Right for You?

If you're someone who believes in long-term wealth creation, disciplined investing, and has clarity on the companies you want to invest in—stock SIPs in Zerodha are a fantastic tool.

Although Zerodha doesn’t currently support automatic execution for stock SIPs, its manual scheduling, reminders, and intuitive platforms make it easy to stay on track. By combining the power of compounding, timing neutrality, and quality stock selection, stock SIPs can become your gateway to financial freedom.