First, the facts. Retail investors now account for about 40% of trading activity in India, up from 2% in 2018, according to a report in The Economist. Small wonder that most products available in the market—such as Systematic Investment Plans (SIPs)—cater to the needs of everyday investors who prefer to build their portfolio piecemeal, month by month, rupee by rupee. On its part, Lemonn, India’s favorite stock broking app, is upping its game by launching Power SIP, an industry-first product. More on that in a bit.
SIPs, which initially became popular as a way to invest in mutual funds, have evolved over the years to include direct stocks. Stock SIPs, which allow you to invest directly in stocks instead of a managed mutual fund, are all the rage among retail investors.
Now, Lemonn is taking the concept of Stock SIP up a notch and supercharging it with leverage to launch Power SIP. Also known as Leveraged SIP, this new tool makes investing automated, disciplined, and scalable. Put simply, Power SIP combines the discipline of SIP investing with the power of Margin Trading Facility (MTF), a unique product that allows investors to invest more money in stocks directly, without stretching their budget. This blog post will explain the product in detail, complete with a step-by-step guide for newbie investors.
What is Power SIP?
To understand Power SIP better, let’s first understand Stock SIP and MTF.
A Systematic Investment Plan (SIP) is an investment plan that allows users to invest a fixed amount in a stock at regular intervals, bringing automation and discipline to equity investing. On the other hand, MTF or Margin Trading Facility lets users invest beyond their available balance by borrowing up to 80% of a stock’s value. Users only pay a small daily interest, making it a cost-efficient way to boost their investing power.
Now back to Power SIP.
Power SIP is simply SIP, with leverage.
Power SIP on Lemonn uses the Margin Trading Facility (MTF) to let users invest in more shares every month without paying the full amount upfront.
So instead of simply getting ₹10,000 worth of stock exposure with a ₹10,000 investment, a Power SIP allows you to amplify your exposure. With a ₹10,000 monthly budget, you could gain exposure to stocks worth up to ₹50,000, thanks to the built-in leverage mechanism.
Put simply, you invest small, own more, and build wealth faster, all within a regulated, transparent framework.
How to get started with Power SIP on Lemonn? A step-by-step guide
You can get started on Power SIP almost instantaneously if you have already downloaded the Lemonn app & completed your KYC on your phone. Here’s how you can begin:
Step 1: Open the ‘App’ and search for the company you want to invest in, and tap to open its ‘Asset Page.’
Step 2: Tap the ‘SIP’ option located next to the ‘Buy’ button at the bottom of the screen.
Step 3: Enter SIP details, such as investment amount, start or installment date, and
Toggle ON the Boost Investment option if you want to opt for Power SIP, if it is available
- If MTF is available for the stock, a Boost Investment toggle will be available.
Step 4: If Boost is ON, Lemonn will show the leverage multiplier, your monthly debit amount, and the additional amount Lemonn will invest each month. Review these details before proceeding.
Step 5: Complete mandate. You will be prompted to create a UPI autopay mandate. This is required for SIP creation and future installments. The app will redirect you to your UPI app to approve the mandate.
Note: Once the mandate is active, it’s valid for all future SIPs (until canceled). Additionally, the total mandate limit is ₹1 lakh across all SIPs, with each stock SIP capped at ₹15,000 of your own funds. Lemonn then adds leverage on top, boosting your total investment exposure beyond your contribution.
Step 6: After completing the mandate, your order will be placed on the market (T or T+1). If you selected a different start date, it will be placed on your SIP installment date.
Step 7: On the confirmation screen, you will see a Track Details button. Tap it to view your SIP transaction list, where you can monitor all your SIPs.
Step 8: The placed order will appear in your Portfolio. (Once executed, the SIP order appears in Open Orders and then moves to Closed Orders when filled).
Holdings update automatically: Power SIP (MTF) positions appear under the MTF Card; regular SIPs appear under Normal Holdings.
Note: These steps apply to users setting up Power SIP for the first time. Mandate creation is required only during the first SIP setup. From the second SIP onwards, no new mandate will be created, and investments will continue automatically as scheduled.
Why Power SIP matters
In markets that move quickly and unexpectedly, consistency becomes a superpower. Power SIP ensures that even when prices stagnate, your exposure keeps working harder, setting you up for stronger compounding when the next rally begins.
So whether you are investing in blue-chip stocks or your favorite long-term bets, Lemonn’s Power SIP helps you stay disciplined, efficient, and ahead of the curve. However, it’s important to note that Power SIP amplifies both gains and losses. Meaning, if stock prices fall, your losses will also be multiplied by the leverage just like profits, and you will still need to pay interest on the Lemonn funded amount. So, it is crucial to stay aware of the market volatility and invest responsibly.
Benefits of Power SIP on Lemonn
Power SIP is an exclusive feature available only on Lemonn, designed to help users build wealth in a smarter and faster way. Wondering how it can enhance a user’s investing journey? Here are some of its key benefits.
Build wealth faster: Power SIP can help users grow their portfolio quicker by letting them invest in larger quantities without paying the full amount upfront. For example, if your SIP budget is ₹10,000, Power SIP can give you exposure to up to ₹50,000.
Smarter compounding with discipline: By combining the consistency of SIPs with the leverage of MTF, Power SIP allows users to compound returns on a larger base every month. It maintains discipline and helps users realize their financial goals without taking on uncontrolled risk.
Cash-flow friendly and flexible: Power SIP lightens the monthly cash burden for investors, allowing them to stay invested even during months when funds are tight. If you are tight on budget and can only invest ₹500 per month, Power SIP can boost your exposure to up to ₹2500, helping you stay invested and grow faster.Automated, transparent, and long-term: Once Power SIP is set up, it runs automatically each month. All costs, interest rates, and margins are shown upfront, ensuring complete transparency. And unlike short-term leveraged trades, Power SIP builds real stock ownership, making it a smarter, long-term way to use leverage.
