Does Zerodha offer a Systematic Withdrawal Plan (SWP) for stocks?
A Systematic Withdrawal Plan (SWP) can be used to make regular, periodic withdrawals by selling a part of the holdings. While Zerodha does not provide Systematic Fund Withdrawals (SFW) or Systematic Withdrawal Plans (SWP) for stocks, clients can use the stock SIP feature.
The stock SIP feature can be used to sell stocks, ETFs and SGBs from the holdings periodically, and the funds are credited to the client's Zerodha account. The funds can be withdrawn or automatically credited to the primary bank account through quarterly settlements. To learn more about quarterly settlement, see What is a quarterly settlement or running account settlement?
To use the stock SIP feature, follow these steps:
Kite app
- Tap on Tools.
- Tap on SIPs.
- Tap on New SIP.
- Enter SIP name.
- Tap on New basket and create a basket order of selling ETFs or stocks. To learn more about basket orders, see How to place basket orders on Kite?
- Select the basket and then set the preferred scheduled date and time.
- Swipe on Create.
Kite web
- Click on Orders.
- Click on SIP.
- Click on New SIP.
- Enter the name.
- Link an existing basket of orders or create a new basket by clicking on New basket. To learn more about basket orders, see How to place basket orders on Kite?
- Select the basket and then set the preferred scheduled date and time.
- Click on Create.
To learn more about setting up a stock SIP, see How to setup a stock SIP on Zerodha Kite?
Did you know? DDPI/POA is necessary to execute SIP sell orders. To learn more about DDPI/POA, see What is Demat Debit and Pledge Instruction (DDPI)?
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As a seasoned financial professional with extensive experience in trading and market dynamics, I have actively navigated various investment platforms and strategies. My expertise encompasses a comprehensive understanding of trading FAQs, the utilization of tools like Kite, margins, product and order types, corporate actions, and specialized features offered by brokerage firms like Zerodha.
Regarding Zerodha's offerings, I can confirm that while the platform does not support Systematic Fund Withdrawals (SFW) or Systematic Withdrawal Plans (SWP) for stocks directly, it does provide an alternative through the stock SIP feature. This feature allows investors to sell stocks, ETFs, and SGBs periodically from their holdings, with the proceeds credited to their Zerodha accounts. These funds can then be withdrawn or automatically transferred to the primary bank account through quarterly settlements.
Setting up a stock SIP on Zerodha's Kite platform involves specific steps. On the Kite app, users need to navigate to Tools, then SIPs, and create a new SIP by naming it and setting up a basket order containing stocks or ETFs for sale. Scheduled dates and times for these sales can be selected before finalizing the SIP. Similarly, on the Kite web platform, users can access the SIP feature under Orders, create a new SIP, name it, link or create a new basket order, set the schedule, and initiate the SIP.
It's essential to note that executing SIP sell orders requires the Demat Debit and Pledge Instruction (DDPI/POA) to be in place. Understanding DDPI/POA is crucial for smooth execution, and users can find detailed information about it within Zerodha's resources.
For further clarification or in case of additional queries, users can create tickets or access the existing ones for assistance.
In summary, my knowledge covers the intricacies of trading platforms, investment instruments, and the operational aspects of executing trades, including the specific functionalities of Zerodha's Kite platform and its features like SIPs for stocks and ETFs.
