Kotak Securities plans to launch equity SIP

You, as an average retail investor, may, in the coming days, get to invest in an equity Systematic Investment Plan that is created around a specified set of stocks, if Kotak Securities has its way.

Kotak Securities, a leading equity broking house, is in talks with SEBI to explore the possibility ofl aunching a new product — Advised SIP — that would enable investors to directly take a SIP involving just one or two stocks of his/her choice.

Usually, a SIP helps an investor invest a small amount in a mutual fund scheme of the investor’s choice every month. In such a situation, the mutual fund manages the investment portfolio involving several stocks. The investor invariably does not know how the fund manager churns the portfolio in the mutual fund scheme.

“The novelty of the ‘Advised SIP’ is that the investor can create an SIP around just one or two stocks and invest small amounts that will only go into these stocks,” Kamlesh Rao, Managing Director & CEO, Kotak Securities yold BusinessLine .

Once the specified stocks deliver certain expected returns, Kotak Securities will sell it and replace it with say another stock. An investor can have complete visibility over what is happening to the chosen set of stocks.

Rao said SEBI approval is needed as this could be viewed as portfolio management and licensing issues may arise. Moreover, the portfolio management service is open only for minimum investment of ₹25 lakh. With ‘Advised SIP’, even small retail investors could directly participate in the equity growth story, according to Rao. In the recent bull run, there have been instances where a single stock has outperformed the entire Nifty returns.

Meanwhile, asked to comment on where he saw Nifty moving in the coming days, Rao said Kotak Securities’ view was that Nifty could scale up to 12,000 levels in next 18-24 months. Rao said Kotak Securities wants to establish itself as the second-largest player in the equity stock broking industry over the next one year.

“We are already there in the top league. However, there are many players who are close to us and eyeing the second position. We want to move away from this pack and clearly establish ourselves at the second position in the next one year,” Rao said.

Kotak Securities as a broking house will continue to be a retail and HNI-focussed cash market player in the coming days as well, he said.

In the next one year, Kotak Securities is also eyeing 33 per cent market share in mobile-based trades at the National Stock Exchange. As on date, nearly 20 per cent of all mobile-based trades being put at the NSE comes through Kotak Securities’ mobile app, according to Rao.

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