SIP vs hot stocks: How a simple Rs 3,000 plan outperforms high-flying market favourites, multibaggers

Indian equities have held a steady course through 2025, with the benchmark Sensex rising around 8%—almost mirroring its performance from the previous year. But while the headline index appears calm, the deeper market has been far more turbulent. Several mid- and small-cap stocks that turned multi-baggers in 2024 extended their rallies earlier this year, yet many of those very winners have now seen sharp reversals.

To understand this shift, we screened BSE-listed companies with a market capitalisation above Rs 2,500 crore that doubled investor wealth in 2024 but have corrected more than 30% in 2025. The results highlight a familiar market truth: behind a stable index lies a battlefield of rapid rotations, profit-booking, and shifting sentiment—reminding investors how unpredictable short-term market cycles can be.

Against this backdrop of volatility, experts argue that long-term discipline often outperforms the chase for fast returns. CA Nitin Kaushik explains that a simple Rs 3,000 monthly SIP can quietly create wealth—without timing the market, tracking news flows, or jumping between trending stocks.

According to him, if an investor had contributed ₹3,000 every month into a strong large-cap mutual fund for 20 years, the numbers would look like this:
• Total invested: Rs 7,20,000
• Reasonable large-cap CAGR assumption: 11–12%
• Estimated corpus today: Rs 24,00,000+
• Wealth created: Approximately Rs 17,00,000—purely through consistency

No aggressive bets. No leveraged trades. No emotional decision-making. Just the quiet power of compounding working in the background.

Kaushik notes that true wealth rarely comes from excitement or chasing the newest market favourite. Instead, it grows through patience—something that often feels dull in real time but looks extraordinary in hindsight. Investors who stay calm during noisy market phases, he says, are usually the ones who thank themselves later.

SIP vs stock investment

This long-term mindset is at the core of systematic investing. A Systematic Investment Plan (SIP) allows individuals to invest a fixed amount into a mutual fund at regular intervals, typically monthly. SIPs use rupee-cost averaging, which automatically averages out the buying price over market ups and downs. They also offer instant diversification because mutual funds spread investments across companies and sectors, reducing risk through professional management. Convenience is another key benefit, as SIPs require no active monitoring or market timing. However, SIPs may deliver moderate returns during strong bull runs, involve expense ratios, and offer limited control over the specific stocks held by the fund.

On the other hand, direct stock investing is geared toward investors who want full control and have the knowledge, time, and temperament to research companies. When executed well, direct stock picking can generate significantly higher returns and carries no fund management fees. Yet it also brings higher risks, more volatility, and the burden of building and maintaining a diversified portfolio independently.

Ultimately, whether one chooses SIPs, stocks, or a combination of both depends on temperament, financial goals, and commitment— but the core lesson remains unchanged: in the long run, discipline often beats drama.