SEP and SIP are online investment plans of ICICI Direct that can be used to make long-term investments. Recently, they have been popular in the investment industry, and many traders have been curious about them. Here, we shall discuss all there is to know about SEP and SIP from ICICI Direct; what they are, their benefits, how to start, and how to stop the investment plan.
Systematic Equity Plan (SEP) from ICICI Direct
SEP is a Systematic Equity Plan (SEP) that allows you to control your investments through an organized method. The ICICI Direct platform makes it possible to invest a pre-specified quantity of shares stably. It can be done over a period of time as you decide. For example, you can choose a SEP for six months and invest a pre-specified sum of money per month or other allowed frequency in shares, or on the other hand, you can decide to purchase ten shares monthly through the SEP platform.
Benefits of SEP
There are several benefits of the Systematic Equity Plan and some of which are:
- Low risks attached: as a result of the investment being done over a long time, the risk of market volatility reduces.
- Timing in the market is irrelevant: time is not necessary since it is a long-term investment.
- A disciplined investment approach: buying stocks in small intervals and investing for an extended period makes you disciplined. Furthermore, it teaches you how to build an investment and saving habit.
A Systematic Equity Plan (SEP) may be the best way to invest to average your equity holdings. It is clear – investments like these are long-term, aligning with long-term financial goals.
Systematic Investment Plan (SIP) from ICICI Direct
A Systematic Investment Plan is a tool that helps you to get an extra income over a long period by using small investments at constant time intervals. The ICICI SIP helps you to create a standard investment portfolio by locking assets in stock. In addition, by spreading out the small investments over time, the volatility of the risk of the market is reduced.
In a Systematic Investment Plan, there are different options to choose from: the quantity-based SIP and the Amount based SIPs in stocks, mutual funds, ETFs, and Golds.
Benefits of SIP
A Systematic Investment Plan is a financial investment of the platform ICICI Direct, and there are several benefits to it:
- Flexibility: the mode of withdrawal on the platform is relaxed. To also change the amount of investment is relatively easy and flexible.
- Regular savings: the platform enables you to save regularly since it is designed to be small investments at time intervals.
- Small ticket size: SIP can be started with a small amount of money as the minimum amount of investment required is ₹500.
SIP is aligned with long-term financial goals. It helps investors to benefit from the power of compounding long term.
How to start SIP in ICICI Direct
To be able to invest in ICICI MF or other available products through SIP, there are two ways to go about it. Let’s look at the example of investing in mutual funds.
In the first case, you have to work with a mutual fund distributor who can assist you. In the second case, you can do it online without their help. To do this on your own, you will need to open an ICICI account and choose a SIP. Nevertheless, many newbie investors do not know how to invest online, making it difficult to start a SIP investment.
Below are the steps and required documents by which you can start the trading account and invest with SIP online:
- Proof of identity: this is an official document that shows the investor is who he/she claims to be. It can be voter identification, driving license, unique identification number, etc.
- Proof of address: this is a document that shows your residential address. It can either be a maintenance bill, insurance papers, voter’s identity card, utility bills that are not older than three months, etc.
- Proof of income: documents like income tax returns, proof of salary, current bank statement, etc.
- Proof of bank account.
- PAN card.
- Additionally, you must provide a few copies of recent passport-sized photographs.
- Power of Attorney: this document helps investors transfer security, margins, and transfer funds from a Demat account.
Once all these documents are available, opening a Demat account only involves three steps.
- Verify your details with the documents listed above.
- Complete the self-KYC Process.
- Sign your documents digitally with an e-signature.
Opening an ICICI account with a convenient SIP or SEP plan is not a difficult process. All you need to do is to make sure you have all the documents required.
How to stop SIP in ICICI Direct
You can stop your SIP plan online in Mutual Fund on ICICI Direct with a few steps. Here are all the steps you have to follow to stop SIP in ICICI:
- Log into the ICICI Direct website.
- Expand Mutual Funds in the left navigation bar and then select SIP.
- Click on the “View existing SIP” link.
- Then choose the SIP and click on cancel.
- Then confirm the cancellation.
SIP is an instrument that can be updated or canceled online at any time. Traders just need to submit a cancellation request.
SIP and SEP investment plans with ICICI bank are reliable solutions that meet long-term financial goals. The plans are flexible as you can easily set up an account, withdraw, make changes, and close the account.
Keep in mind that – like every other investment, SEP and SIP have risks. In SEP, you can personally choose the stock you want to invest in while managers make stock selection decisions in SIP, so it is important that you have adequate knowledge about equity investment.