Reliance Securities launches regular stock purchase plan

August 4th, 2011 - 7:19 pm ICT by IANS  

New Delhi, Aug 4 (IANS) Reliance Securities, a part of Reliance Capital, Thursday announced the launch of a systematic investment plan - the Regular Stock Purchase (RSP) - which allows customers to invest directly in equity markets at regular intervals.

“Our new plan is aimed to inculcate a habit of regular investment in fundamentally good stocks. This will help average out price volatility and generates better returns in the long term to investors,” said Vikrant Gugnani, executive director, Reliance Securities.

“The plan allows buying scrip at regular interval, over a period of time, for specified amounts or defined quantities,” he added.

The RSP plan, available to all Reliance Securities broking customers, allows investors to make systematic investments in their chosen stock or exchange traded fund’s (ETF) in a sustained manner under two options - specific amount or specific quantity - for a fixed tenure.

An investor can choose to invest and fixed amount or purchase a fixed quantity of their preferred stock or ETF from RSLs existing basket offering over 263 stocks and 17 ETFs.

“We will continuously add more scrip to our basket going forward. We sincerely believe that long-term sustained investment is the best way for small investors to accumulate wealth in the stock market,” said Gugnani.

Investors need a one-time free registration to activate RSP facility in their existing plans and normal brokerage is applicable on every sale and purchase.

The plan does not mandate any lock-in period for holding stocks ensuring complete liquidity to investors at all times. Investors can set their frequency of investment to daily, weekly or monthly for upto a three year period.

The company also said that it has already enrolled over 6,000 customers in the first month of pilot project and plans to add over 10,000 customers every coming month.

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