Anil Ambani group firm Reliance Securities today launched a systematic investment scheme - Regular Stock Purchase Plan - which allows customers to invest in equity market by making small, regular investments.
The company plans to offer customers a systematic way to invest directly in equity markets at regular intervals.
“Reliance Securities targets to get over 10,000 customers each month, scaling it to over 1 lakh customers in first year itself. The company has already enrolled over 6,000 customers its one-month pilot phase,” the brokerage firm said in a statement.
The plan offers two options for investments - amount based and quantity based.
“Under the amount based option a customer can invest fixed amount in desired stock at set frequency for a selected tenure, while under the quantity based option a customer can purchase a fixed quantity of stocks at set frequency for selected tenure,” the statement said.
Reliance Securities ED Vikrant Gugnani said, “Buying regularly helps average out price volatility in the stock market. The plan is aimed to help investors in accumulating wealth by making small, regular investments over a period of time.”
“Studies indicate that periodic investments in stocks or mutual funds have delivered far better returns than adhoc investments done with a view to time the market,” he said.
Gugnani, further noted that stock selection or fund selection plays an important role.
There is no lock-in period for holding the stocks.
Purchased stocks can be sold at any time giving complete liquidity to customers, the statement opined. It added that the set frequency could be daily, weekly or monthly and can be stretched over a three year period.
Also, there is the option to invest in stocks as well as ETF’s available in RSLs basket. Reliance Securities currently offers 263 stocks and 17 ETFs in its basket for selection and will add more.
There are no charges for enrolling with the plan. A one time registration is required to activate this facility which is free.