FINANCIAL MANAGEMENT
03/08/2011
Hit by falling volumes, brokers take the SIP route to win over investors
In an uncertain market, with small investors reluctant to write fat cheques to buy stocks, broking firms are peddling a new product: equity SIP. Systematic investment plans (SIPs) are typically mutual fund schemes that collect money from investors in regular intervals. Several investors are attracted to SIPs as investment commitments are in small doses. Now, leading brokers are trying to replicate the principle to attract investors to purchase stocks directly by investing small amounts over a period of time. Brokers, hit by dwindling volumes and drop in earnings, feel it could be a way out to bring back retail investors. ICICI Direct, HDFC Securities, Kotak Securities, Reliance Securities and Geojit BNP Paribas are among broking firms that are offering the new product. Their advice to retail investors is that 'equity SIP' is a route to accumulate stocks by averaging out high and low prices in a choppy market.
Source : https://economictimes.indiatimes.com/markets/stocks/market-news/hit-by-falling-volumes-brokers-take-the-sip-route-to-win-over-investors/articleshow/9462784.cms
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