Name: Nandhini. R & Mervin Joe Aaron. A
Country: India

Year: 2026
Volume: Volume-13, Issue-1 (January-June)
Page Number: 109-115
DOI: https://doi.org/10.5281/zenodo.19593490

ABSTRACT
Systematic Investment Plans (SIPs) have emerged as a practical wealth-building avenue for small investors by enabling disciplined, periodic investments in mutual funds with low entry barriers. This study examines the role of SIPs in wealth creation, especially for individuals with limited disposable income, by analyzing the combined effects of affordability, rupee cost averaging, compounding, and investment discipline. The study adopts a descriptive and analytical approach using secondary data from investor education sources and recent industry references, supported by a conceptual wealth accumulation framework. Findings indicate that
SIPs are particularly suitable for small investors because they allow participation in marketlinked growth with modest monthly contributions, often starting from very low amounts, while reducing emotional and timing-related investment errors. The study also highlights that long-term continuation is crucial, as wealth creation through SIPs is strongly associated with patience, consistency, and horizon-based investing rather than short-term market prediction. The paper concludes that SIPs can democratize investment participation and contribute meaningfully to financial inclusion when supported by investor awareness and disciplined saving behaviour.

Keywords: Systematic Investment Plan, SIP, wealth creation, small investors, mutual funds, rupee cost averaging, compounding.