Self Help Documentation
Stock SIP vs. Mutual Funds SIP
| Feature | Stock SIP | Mutual Fund SIP |
| Definition | Systematic purchase of shares at fixed intervals | Periodic investment in mutual fund schemes |
| Underlying Asset | Individual stocks | Basket of stocks/bonds managed by a fund house |
| Managed By | Self-managed (investor decides stocks) | Professionally managed by fund managers |
| Diversification | Depends on how many stocks you choose | Already diversified as per fund’s investment policy |
| Control & Customization | High – investor selects specific stocks & quantities | Limited – based on fund manager’s decisions |
| Risk Level | Higher – exposure to single stocks | Lower – diversified exposure reduces concentration risk |
| Returns | High return potential but more volatile | Moderated returns with balanced risk |
| Taxation | Based on individual share sale (STCG/LTCG) | Equity/debt mutual fund tax rules apply |
| Minimum Investment | Typically starts from ₹500 or 1 share | Usually starts from ₹500 or ₹1000 per SIP |
| Liquidity | High – shares can be sold anytime | High – units can be redeemed easily (except ELSS) |
| SIP Types | Amount-based or quantity-based | Amount-based only |
| Brokerage/Charges | Delivery brokerage + taxes | Fund management fees (TER) + exit loads (if any) |