• An analytical study on the role of SIP on wealth creation

DOI:DOI:18.A003.aarf.J14I01.010776

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Dr Mohd Tarique Khan

Abstract:
Systematic Investment Plans (SIPS) offer a disciplined, evidence-based approach to wealth accumulation, and this analysis adheres to an objective academic standard. SIPS have emerged as one of the most effective means of wealth creation. There are three key research gaps regarding SIPS: none of the studies has analysed SIPS comprehensively from a country-specific perspective; none has considered the cross-country dimension; and few have examined the behavioural dimension. These gaps underscore the need for a robust empirical analysis of SIP wealth outcomes and for moving beyond current country- or cross-country-level studies to consider the national, cross-national and behavioural dimensions. This analysis provides a comprehensive, country-specific (Indian) framework for the first large emerging market to consider substantial, large-scale implementation of SIPs, and for a small number of countries globally. Growth trends, compound growth rates and analytical equations are examined for wealth outcomes. Broadly confirming existing findings, SIPS promote wealth creation, and the analysis provides actionable investment-related insights pertinent to policy and practice.