How-to stock SIP Kite basket order recurring investment CNC delivery

How to create a stock SIP on Kite

From WebNotes, a public knowledge base. Last updated . Reading time ~10 min. Level: Beginner.

This guide walks through creating a stock SIP on Kite , Zerodha’s trading platform, so that a chosen list of equities or ETFs is bought automatically on a schedule you set. A stock SIP is built from a basket : you assemble the buy orders once, link the basket to a SIP, set a date and time, and Kite repeats the orders on each cycle. It is for an investor who wants to accumulate shares or ETF units on a fixed calendar without placing the same delivery orders by hand each time.

A stock SIP places ordinary CNC delivery orders in the cash market from cash already in your account. It is free as a feature, has no minimum amount set by Zerodha, and lets you run up to 50 SIPs. For the concept and how it differs from a mutual fund SIP, read Kite stock SIP overview first; this guide is the setup flow.

Conflict-of-interest disclosure. This guide is published by the WebNotes Editorial Team for informational purposes and is written independently. WebNotes operates a Zerodha account-opening referral programme, disclosed on the pages that carry the referral link; this guide does not carry it and earns no referral commission from the procedure described here.

Step-by-step procedure

The procedure infobox near the top lists the six steps. The H3 sections below expand each one, with the exact Kite labels and the points that trip people up: the basket build, the schedule window, and the funding rail.

1. Open the SIP tab on Kite

On Kite web, click Orders in the left menu, then click SIP. On the Kite app, tap Orders, then tap SIPs. This page is where every stock SIP is created and managed; it lists each existing SIP with its name, linked basket, schedule, and status. A stock SIP is a Kite feature, separate from mutual fund SIPs, which run on Coin .

2. Start a new SIP

Click New SIP on web, or tap New SIP on the app. Enter a SIP name. Choose a name that tells you what the SIP does at a glance, since the list can hold up to 50 SIPs and a vague name makes the right one hard to find later. A name such as “Large-cap monthly” or “Gold ETF fortnightly” works better than “SIP 1”.

A stock SIP runs the orders in a basket , so the basket is the heart of the setup. Link an existing basket if you already saved one, or create a new basket by clicking New basket on web or tapping New basket on the app.

For each line in the basket, set the scrip, the exchange, the transaction type buy, the quantity, the order type, and the product code CNC. The order type is usually market for a SIP, so the order fills at the prevailing price on the scheduled day; a limit order may not fill if the price has moved away from the limit, which would skip that line. A basket can hold up to 20 orders, and you can link more than one basket to a single SIP, in which case all the orders across the linked baskets fire in the same SIP trigger.

Set the quantity, not a rupee amount, on each line. A stock SIP buys whole shares or whole ETF units, so the cash needed per cycle is the sum of quantity times price across the basket. For the way the per-scrip minimum works and why high-priced shares need a large ticket, see minimum stock SIP amount on Kite .

4. Select the basket and set the schedule

Select the basket, then set your preferred scheduled date and time. The schedule controls when the SIP fires. The time slot must fall between 9:30 AM and 3:00 PM, in 30-minute intervals, and only one SIP can use a given time slot on a given day. You can set up to 5 schedules for any day of the month, each on its own slot.

Frequency comes from how you space the chosen dates: select dates at a daily, weekly, fortnightly, or monthly interval to get that cadence. The full mechanics, including how a holiday date is handled, are set out in stock SIP frequencies on Kite .

5. Fund the account or set an e-Mandate

A stock SIP draws from cash already in the Zerodha account; it does not pull money from your bank on its own. Two ways to keep it funded:

  • Keep a standing cash balance in the trading account that covers the basket value each cycle.
  • Register an e-Mandate on Console so funds move from the bank to the Zerodha account before the SIP date. The e-Mandate is the automation rail that makes a stock SIP behave more like a mutual fund SIP.

If the cash is not there on the scheduled date, the SIP skips that cycle. It does not borrow, retry within the cycle, or carry the missed amount forward.

6. Confirm the SIP

Click Create on web, or swipe Create on the app. The SIP now appears in the SIP list with its schedule and linked basket. A reminder email reaches your registered email ID one day before each scheduled SIP date, and an intimation email arrives when the SIP triggers, so you can check that the orders went through.

Funding the account: balance versus e-Mandate

The funding choice decides how reliable the SIP is. A standing balance is simple but ties up cash and needs manual topping up. An e-Mandate on Console authorises the bank to move a capped amount to the Zerodha account on a schedule, so the cash is there when the SIP fires; this is the closest a stock SIP gets to the bank-debit automation of a mutual fund SIP. Set the mandate amount to cover the basket value with a margin for price movement between setup and execution, since a share’s price can drift and a market order will need the cash at the day’s level.

How the basket determines the investment

A stock SIP invests by quantity, not by a fixed rupee amount, because the cash market trades whole shares. The cash each cycle is the sum of the basket lines at the day’s prices. This is the key difference from a mutual fund SIP, where a fixed amount buys fractional units. If you want a roughly fixed rupee outlay, tilt the basket towards lower-priced shares and ETFs, where one unit is a small fraction of the target amount, so a small change in price does not swing the cash needed by much. The arithmetic per scrip is in minimum stock SIP amount on Kite .

Tax treatment of stock SIP buys

Each SIP execution is a separate delivery buy with its own purchase date and cost, so the holding period is reckoned per lot. Shares or units held more than 12 months qualify for long-term capital gains treatment on sale; those held 12 months or less are short-term. Because a SIP creates many small lots at different dates, the gain on a later sale depends on which lots are sold and their individual holding periods. For a portfolio of any size, confirm the treatment with a Chartered Accountant before filing, and note that tax rules change annually with the Finance Act; this guide reflects the position for FY2026-27.

See also

External references

References

  1. Zerodha support, How to create a stock SIP on Kite? (steps for Kite web and Kite app, schedule and basket notes, as of 21 June 2026).
  2. Zerodha support, How to set up weekly, fortnightly, monthly or daily stock SIP? (frequency by date spacing, holiday handling, as of 21 June 2026).
  3. Zerodha support, Stock SIP feature notes: delivery cash market only, funds in account, e-Mandates on Console, maximum 50 SIPs, no minimum amount, free of feature fee (as of 21 June 2026).
  4. Income Tax Act, 1961, Sections 111A and 112A, for short-term and long-term capital gains on listed equity (FY2026-27).

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