How to Invest in the Upstox (Stocks, Mutual Funds & IPO)

Upstox comes with a user-friendly interface, making it easy for beginners to invest their money. I am going to cover all the investment options available in Upstox such as –

  • Stock investment
  • Mutual funds
  • IPO

Before getting into details of the different investment types available in Upstox, let’s have a quick look at the benefits Groww app.

Upstox Benefits

  1. Easy to use: Upstox has a simple user interface making it easy to use for a beginner
  2. Low pricing: Upstox charges a minimal brokerage fee which is lower of 0.05% or Rs 20 per order. You can check out all Upstox charges in this article which will include brokerage and other charges.
  3. Direct mutual fund investment: Upsotx doesn’t charge a commission for investing in mutual funds. 
  4. Free account: You don’t have to pay any account opening as well as an account maintenance fee.

How to Invest in Stocks in the Upstox

Step 1 – Open a Upstox Demat Account

upstox create account

You have to sign up for a Upstox demat-cum-trading account using your email id, mobile number, and PAN card number. Complete your KYC verification process.

KYC or Know Your Customer is a mandatory process to verify your identity and prevent fraudulent activities. You can complete your KYC process by submitting your Aadhaar card and verifying through a linked mobile number.

Upstox takes around 48 hours to open your accounts.

Step 2 – Add Funds to Your Account

upstox deposit funds

After the account is opened, you can log in to your account and add funds to your account. You can transfer money to the Upstox account through NEFT, UPI, and a debit card.

Step 3 – Add Stocks to Watchlist

upstox add stocks to watch list

After adding funds to the Upstox account, you can search for the stocks in the search bar. You can search for stocks by their name or ticker symbol. For example, you can either search Hindustan Unilever or HindUniliver.

You can add your favorite stocks to the watchlist. You can make multiple watchlists in the Upstox for different stocks, and sectors or create watchlists based on your own criteria.

Step 4 – Analyze the Stock

Once you have found stocks you want to invest in, you can analyze your stocks to finalize for investment. To analyze stocks, you should consider different things like 

  • Company’s financial performance
  • Management efficiency
  • Sectoral trends
  • Industry growth
  • Current market conditions

You can get this information from the company’s annual reports, and quarterly earnings reports available within the Upstox platform.

Step 5 – Buy Stocks

After reviewing the stock, click on the “Buy” button. 

buyy stock in upstox

On the order window, Enter the number of stocks you want to buy and the price at which you want to buy them. You can select “Market” if you want to buy at the current market price.

Select the ‘Delivery’ option from the order type to buy and hold stocks in your demat account. Review the details and confirm the order. 

You can read our article on how to invest in stocks in Upstox to learn in detail. I have also reviewed the broker in the same article.

How to Invest in Mutual Funds in the Upstox

Step 1 – Open Account on the Upstox

To invest in mutual funds on Upstox, you need to first set up an account on the app by following the steps mentioned earlier.

Step 2 – Search Mutual Funds

mutual funds in upstox

You see the “Explore” section by default when you log in to Upstox which shows all the mutual funds available. You can search for mutual funds by their name, category, or fund house.

Step 3 – Review Mutual Fund

mutual fund details in upstox

Once you have found the mutual fund you want to invest in, you can review it by checking its past performance, fund manager, and expense ratio.

Step 4 – Pay Lumpsum or Initiate a SIP

Choose the mutual fund you want to invest in and select either the One time (lumpsum) or ‘SIP’ option.

buy mutual funds in upstox

For Lumpsum investment, you can enter the amount you want to invest and click on “Invest One Time” and then click on “Confirm”.

For SIP, click on “Start Monthly SIP”, and enter the amount you want to invest through the SIP and the duration of the SIP. You can choose the frequency of your SIP (weekly, monthly, or quarterly).

Step 5 – Pay the Investment Amount

Review the details and confirm the SIP. Once you confirm the SIP, you’ll have to authorize an e-Mandate to let the bank auto-debited from your bank account as per the frequency chosen by you and invest in the selected mutual fund.

You can also read our articles Upstox vs Groww, Upstox vs 5paisa, and Upstox vs Zerodha to compare the top discount brokers with Upstox in detail.

How to Invest in IPO in Upstox

Here are the steps you need to follow to bid for an initial public offering (IPO) in Upstox:

Step 1 – Go to invest.usptox.com/ipo 

Step 2 – Select the IPO you want to bid for and log in to the web portal.

ipo bid in upstox

Step 3 – Enter the details like the no. of shares, the price at which you want to bid, and the investment amount.

ipo details in upstox

Step 4 – Enter your UPI ID to initiate the payment process. You’ll receive a mandate on your UPI app to complete the payment.

UPI ipo

Step 5 – Authorize the mandate on your UPI app.

Once the mandate is authorized, the bid will be placed on the stock exchange. You can track the status of your IPO application in the ‘IPO’ section on Upstox.

Conclusion

Upstox comes free of cost and is easy to use. Upstox’s trading platform is also robust and snappy making it an ideal choice for traders.

However, Upstox charges 0.5% or RS 20 per order (whichever is lower) on equity delivery which might be disappointing for some investors like you and me as Zerodha has kept equity delivery free.

Upstox also lags behind top players like Zerodha in the customer support section and has to improve its customer support efficiency to compete in the industry.

FAQs

What are the fees and charges associated with investing in Upstox?

Investing in mutual funds on the Upstox is free of cost. There is no transaction charge or commission on mutual fund investments. Moreover, there is no account opening or annual maintenance fee.

However, if you decide to invest in stocks, you have to pay a brokerage fee of Rs. 20 per order, irrespective of the order size. This makes the Upstox one of the cheapest stockbrokers in India.

Can I track my investment performance on the Upstox?

Yes, you can track your investment performance on the Upstox . The broker provides a comprehensive dashboard that shows your portfolio’s value, your returns, and your investments’ performance.

Understanding the types of mutual funds on Upstox

Upstox offers a wide range of mutual funds. Some of the popular mutual fund categories available on the Upstox are:

Equity funds: These mutual funds invest primarily in equity and equity-related instruments. They are suitable for long-term investments and have the potential to generate higher returns than other mutual fund categories.

Debt funds: These mutual funds invest in fixed-income instruments such as government bonds, corporate bonds, and money market instruments. They are suitable for short-term investments and provide stable returns with lower risk.

Hybrid funds: These mutual funds invest in both equity and debt instruments. They are suitable for investors who want to balance risk and returns.

Tax-saving funds: These mutual funds offer tax benefits under Section 80C of the Income Tax Act. They have a lock-in period of three years.

How to choose the best mutual funds to invest in on Upstox?

Identify your investment goals and risk appetite: Your investment goals and risk appetite should guide your mutual fund investment decisions.

Understand the mutual fund categories: Before investing in a mutual fund, you should understand the mutual fund category and its investment objective.

Look at past performance: Past performance is not a guarantee of future performance, but it can give you an idea of how the mutual fund has performed in different market conditions.

Check the fund manager’s experience: The fund manager’s experience and track record are crucial factors in choosing the right mutual fund.

Look at the expense ratio: The expense ratio is the annual fee charged by the mutual fund company to manage your investment. A lower expense ratio means more of your money is invested, and less is spent on fees.

Is Upstox safe for investing?

Yes, Upstox is safe for investing. The broker is registered with the Securities and Exchange Board of India (SEBI) and follows all the regulations mandated by SEBI.

Moreover, Upstox has installed bank-grade security to protect its users’ data and investments.

What is the minimum investment amount on Upstox?

The minimum investment amount on Upstox varies depending on the asset you choose.

Can I redeem my mutual fund investment anytime on Upstox?

Yes, you can redeem your mutual fund investment anytime on Upstox except Tax-saver ELSS funds that come with a 3-year lock-in period. However, some mutual funds may have an exit load if you redeem your investment before a certain period.

Can I invest in direct mutual funds on Upstox?

Yes, you can invest in direct mutual funds on Upstox.

About Rajan Dhawan

Rajan has covered personal finance and investing for over 5 years. Previously, he was in the IT field for 8 years after completing his MCA but his deep interest in personal finance led him to become an investing expert. He is passionate about investing, stocks, startups, and cryptos.

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