Dear Friend,
I need to confess something that most of us whisper in private: sometimes SIPs feel like a scam. Yes, it does feel a little dramatic to say it out loud, but hear me out.
Imagine this: You’ve invested with discipline every month for years. You’ve skipped that weekend trip, ignored the latest phone upgrade, and chosen SIP over instant gratification. Then one day, you open your portfolio, and instead of a rewarding green, you see a deep, bleeding red. That sinking feeling of losing money? I’ve been there too.
Last April, my trusted midcap fell into a well. I almost hit Stop SIP. Today it’s back at 18% and I’m just glad I didn’t panic. But there are still days when I ask myself: Do SIPs even work?
If you’ve ever felt let down by your SIP, let me walk you through what I learned the hard way.
Myths I Believed (and How They Broke)
When I first began, I thought profits would show up from day one. Expectation: a smooth upward curve. Reality? The graph looked like a teenager learning how to drive. Zig-zag, unpredictable, messy. Only later did I realise: early years are chaotic, but the long run is where SIPs deliver.
And then came the real shock. I believed SIPs were bulletproof. But 51 equity SIPs out of 277 delivered –10% returns in the past year. Seeing that bright red number on my screen stung, but it also taught me that volatility is part of the game.
My next myth? Believing that just the “habit” of doing SIPs would make me wealthy. Truth is, SIPs are like a slow-cooked curry: they need time, quality ingredients (good funds), and patience. Research shows it takes at least 5 years for an SIP to stand an 80% chance of delivering decent returns. Checking too often didn’t change outcomes; it only stressed me out.
The Turning Point
I also assumed every fund was right for me. Wrong again. Over time, I reassessed my portfolio and added a mix of large and mid-cap funds for balance. Turns out, it wasn’t the habit alone, it was the quality of funds plus tenure that did the heavy lifting. So stay consistent but also do your research.
And when I started doubting my financial decisions, I decided to look at the bigger picture. In July 2025, SIP investments hit a record high of ₹28,464 crore, with 9.1 crore active accounts. While SIP AUM touched ₹15.17 lakh crore, accounting for 19.7% of the industry’s total average AUM of ₹77 lakh crore!
The lesson? Despite the dips, clearly lakhs of investors like me are sticking it out. They’ve learned to trust the process, not the daily performance. And that my friend, is the perspective which gave me comfort.
The Bigger Picture (And Your Next Step)
Think of your SIP funds like a gym membership. You don’t see abs in the first month, but you keep showing up. Over years, the compounding of those small efforts builds a fitter you. SIPs work the same way: boring in the short term, powerful over a decade.
Yes, there will be years when markets are down, just like weeks when you skip the gym. But stay consistent, choose the right trainer (read: fund), and the results eventually show.
So if you’re disappointed today, don’t quit. Instead:
- Reassess your funds, not your faith.
- Stretch your horizon: SIPs are marathons, not sprints.
- Focus on the bigger picture: wealth is built in decades, not months.
Disappointment in SIPs is real. But it’s also a rite of passage every investor goes through before they discover the true magic of compounding.
So the next time your SIP feels like a scam, don’t see it as the end of the story. See it as the plot twist before the payoff.
Warmly,
A Fellow Investor (who almost gave up too soon)
Note:
The purpose of this article is to share insights, data points, and thought-provoking perspectives on investing. It is not investment advice. If you wish to act on any investment idea, you are strongly advised to consult a qualified advisor. This article is strictly for educational purposes. The views expressed are personal and do not reflect those of my current or past employers.
Sneha Virmani is a content strategist and writer with over a decade of experience. She is an alumna of Lady Shri Ram College, Delhi University (Economics & Psychology). Sneha specialises in storytelling-led content strategies and consumer education campaigns. Her work brings context and clarity, with a no-jargon approach designed to engage everyday readers.
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