An SIP alone won't build wealth, the portfolio behind it will

Financial advisors and fund managers emphasize that a Systematic Investment Plan (SIP) does not guarantee wealth creation if the underlying mutual fund portfolio is poorly chosen.

A common misperception is that regular investing alone builds wealth, but the quality and performance of the chosen funds are the true drivers of returns.

Investors are urged to focus diversification across asset classes and rigorous fund selection using criteria such as historic returns, expense ratios, and fund manager track records.

Even disciplined SIPs in underperforming funds can lead to suboptimal outcomes, making portfolio review and rebalancing a critical part of the investing process.