Understanding the Popularity and Efficacy of SIPs as a Preferred Investment Option in the Indian Market

DOI:10.34047/MMR.2025.12201

Abstract

Introduction: - Systematic Investment Plan (SIP) emerged as preferred investment option among retail investors in India. Offering a disciplined approach to wealth creation. SIPs are often selected for their convenience and long-term returns. Various financial and psychological factors impact investors decision making. Understanding these factors can provide insight into the growing popularity and efficacy of SIPs in Indian market.
Objective of the study: - Analyze factors contributing growing preference of SIPs among the retail investors in India and asses the satisfaction level with SIP investment.
Methodology: - the study is based on primary data collected through a structured questionnaire among SIP investors to assess satisfaction level and influencing factors. The responses were analyzed by statistical methods using ANOVA test to identify patterns and significant relations.
Result: - the findings suggests that SIPs is significantly influenced by income level, Age and other financial factors. The study also highlights SIPs are preferred for their systematic nature, affordability and potential for wealth creation.