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What is “Amount” based Equity SIP?

April 26, 2017based equity SIP

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What is “Amount” based Equity SIP?

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Amount based Equity SIP is a SIP type wherein a fixed amount (or approximately the same) is invested in your desired scrip at each frequency. In case of Amount based SIP, you need to specify the amount to be invested in the scrip at your desired frequency. The amount specified by you should be equal to or above the minimum amount defined by I-Sec. At the time of placement of your SIP order, since quantity of shares has to be specified, the same will be calculated by dividing the SIP amount specified by you with the prevailing market price of the scrip at the time of order placement as per the SIP request. The formula would be Quantity = SIP Amount / Market price. Any fractional quantity will be ignored and order will be placed for the balance quantity. The actual order value would be based on the market price for the quantity so calculated above.