'Goal of a SIP isn't to beat the market...': Radhika Gupta on building long-term wealth through market ups and downs

Systematic Investment Plans (SIPs) continue to attract record inflows from retail investors, underscoring the growing preference for disciplined, long-term investing over trying to time the market. According to the Association of Mutual Funds in India (AMFI), investors contributed ₹31,781 crore through SIPs in June 2026, taking cumulative SIP collections for the first quarter of FY27 to ₹93,850 crore.

The steady rise in SIP investments comes even as markets remain volatile, reinforcing the idea that regular investing rather than market timing is becoming the preferred wealth creation strategy for Indian households.

Edelweiss Mutual Fund Managing Director and CEO Radhika Gupta believes that is precisely how beginners should approach equity investing.

Speaking on The Alpha Bets by Groww, Gupta said the objective of investing through SIPs is not to outperform everyone else in the short term. "The goal is not to beat the market in the first year but to stay invested long enough for compounding to work," she said.

Why does Gupta recommend mutual funds first

According to Gupta, most people starting their investment journey are busy building careers and do not have the time or expertise to research companies, analyse financial statements or monitor markets every day. Instead of attempting to pick winning stocks, she recommends beginning with a diversified actively managed mutual fund or a broad-based index fund. "For most beginners, the first investment in equities should ideally be through a mutual fund."

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Gupta also follows the same philosophy personally. She revealed that she has started a SIP for her newborn son in a large and mid-cap index fund, demonstrating her conviction that wealth creation begins with disciplined investing rather than chasing short-term returns.

She also advises investors to develop the habit of saving before focusing on returns. Treating savings like a compulsory monthly expense, similar to taxes, can help investors remain consistent even during uncertain market phases.

What is a SIP?

A Systematic Investment Plan (SIP) is an investment facility offered by mutual funds that enables investors to invest a fixed amount at regular intervals, usually every month, instead of making a lump-sum investment. SIPs can start with as little as ₹500 per month, while the recently introduced Chhoti SIP allows investments from ₹250 per month.

The investment is made through standing instructions to debit the investor's bank account automatically, making it a convenient and hassle-free way to invest.

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SIPs have become increasingly popular because they promote disciplined investing and benefit from rupee cost averaging, under which investors purchase more units when markets decline and fewer when prices rise. This helps reduce the impact of short-term volatility and removes the pressure of deciding the "right" time to invest.

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SIP participation continues to rise

AMFI data shows that the number of outstanding SIP accounts reached 1,051.59 lakh at the end of June 2026. During the month, 55.51 lakh new SIPs were registered, while 978.30 lakh SIP accounts contributed to monthly inflows. The industry's SIP assets under management (AUM) climbed to ₹17.70 lakh crore.

Monthly SIP collections have grown dramatically over the years, rising from ₹3,122 crore in April 2016 to over ₹31,000 crore in both April and June 2026, reflecting increasing retail participation in equity mutual funds. 

Parameter	June 2026
SIP Contribution	₹31,781 crore
Total SIP Collections (Apr-Jun FY27)	₹93,850 crore
Outstanding SIP Accounts	1,051.59 lakh
New SIPs Registered	55.51 lakh
SIPs Discontinued/Completed	50.64 lakh
Contributing SIP Accounts	978.30 lakh
SIP Assets Under Management (AUM)	₹17.70 lakh crore

For Gupta, the message is simple: investors should not obsess over finding the next multibagger or predicting market movements. Instead, choosing a diversified mutual fund, investing regularly through SIPs and staying invested across market cycles gives compounding the time it needs to create long-term wealth.