While many investors feel systematic investment plans (SIPs) are useful only because they help average out prices in a volatile stock market, Capitalmind Founder and CEO Deepak Shenoy said the primary reason in reality is that most people earn monthly, facilitating monthly investments.
SIP averaging out high and low prices in a volatile stock market is an outcome, not a goal, Shenoy said in a post on X, calling it something the industry decided is a “good thing”. “The main reason is: most of us earn money monthly. End of story. You earn, you spend, you save, you invest. That cycle happens monthly, and therefore you SIP monthly,” he added.
