A Study on Impact of SIPs on Long-Term Wealth Creation

Abstract

One of the best and most disciplined ways for individual investors in India to invest is via Systematic Investment Plans (SIPs). Investing in mutual funds on a periodic basis is made possible by systematic investment plans (SIPs), which encourage long-term asset accumulation, financial planning, and a decrease in the risk of market timing. Investor returns, risk reduction, and long-term investing behavior are the primary foci of this research as it investigates the effect of SIPs on wealth creation. The research examines SIP performance using parameters including CAGR, XIRR, volatility, drawdowns, and rupee cost averaging advantages using historical data of equities mutual funds. When compared to lump-sum investments, systematic investment plans (SIPs) improve portfolio stability and mitigate market volatility.Investment discipline, risk tolerance, and responses to market volatility

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