A STUDY ON THE GROWTH AND PERFORMANCE OF SYSTEMATIC INVESTMENT PLANS (SIPS) IN MUTUAL FUNDS

The rapid expansion of the mutual fund industry has significantly reshaped the investment environment in emerging economies, particularly in India, where retail investor participation has increased substantially in recent years. Among various investment mechanisms, Systematic Investment Plans (SIPs) have gained prominence due to their disciplined investment structure, affordability, and ability to reduce market volatility through rupee cost averaging. Despite the growing adoption of SIPs, questions persist regarding their growth trajectory and contribution to mutual fund performance. The present study examines the growth and performance of SIP investments in the Indian mutual fund industry during the period 2021–2025.

The research adopts a quantitative research design based on secondary data collected from industry reports, financial databases, and regulatory publications. Analytical tools such as trend analysis, descriptive statistics, correlation analysis, and regression analysis are employed to examine the relationship between SIP inflows, Assets under Management (AUM), and mutual fund returns. The analysis reveals a substantial increase in SIP inflows and a strong positive relationship between systematic investments and mutual fund performance indicators.

The study concludes that SIPs play a crucial role in promoting disciplined investment behaviour, expanding retail investor participation, and supporting long-term capital market development. These findings highlight the importance of SIPs as a sustainable investment strategy for wealth creation and financial market stability.