Systematic Investment Plans (Sips) As a Tool for Retail Wealth Creation: An Empirical Analysis

Systematic Investment Plans (SIPs) have emerged as one of the most widely adopted investment mechanisms among Indian retail investors. This study analyses the growth, performance and behavioral relevance of SIPs during the period 2022–2025 using secondary data sourced from AMFI, NSE, RBI and other credible financial institutions. The analysis focuses on SIP inflow trends, average monthly contributions, benchmark market performance and comparative returns with traditional instruments such as FD, PPF and gold. The findings reveal a strong and consistent rise in SIP inflows and investor participation, even during volatile market conditions. Average monthly SIP investments nearly doubled across the three-year period, reflecting disciplined investor behaviour and growing financial awareness. The analysis shows that equity SIPs outperform most traditional investment avenues in terms of long-term wealth creation due to the combined effect of compounding, rupee-cost averaging and systematic investing habits. Overall, the study concludes that SIPs have emerged as a robust, resilient and effective investment tool for long-term wealth accumulation in India.