Arif, I’ve been investing for ten years, he said proudly.
Every single month. But when I checked last week, I felt cheated. The amount
I’ve built looks... ordinary. Everyone says SIPs create wealth, but where’s my
wealth?
I’ve heard that line hundreds of times. And every time, I
can feel the frustration. People do everything right they start their SIPs,
stay disciplined, and don’t panic during market crashes. Yet when they finally
look at the results, it doesn’t look like the dream they imagined.
That’s what I call The SIP Trap when you follow the
rules without really understanding how wealth is built.
The Myth of “Set It and Forget It”
When SIPs became popular, the message was simple: invest
regularly and compounding will do the rest. It sounded magical.
But here’s the truth: SIP is not a magic button. It’s just a
disciplined method to invest.
Your wealth doesn’t depend on how long you’ve been
investing, but how you’ve been investing.
I often ask people who proudly say, I’ve been doing SIPs for
ten years how much have you increased your SIP in that time?
Most go silent. They started with ₹5,000 or ₹10,000 a month
and never changed it, as if their income and expenses froze in time.
That’s the first trap confusing consistency with stagnation.
If your income doubles and your SIP doesn’t, you’re actually saving less, not
more.
The Inflation Blind Spot
A friend once showed me his ten-year SIP portfolio with a
proud smile. But after adjusting for inflation and rising lifestyle costs, the
truth hit hard his money hadn’t really grown.
Ten years ago, his monthly expenses were ₹50,000. Today,
they’re ₹1.2 lakh. On paper, his investments looked fine. In reality, he was
just running in place.
That’s the second trap ignoring inflation. Money’s purpose
isn’t to look big, it’s to do big things.
If your SIPs aren’t linked to clear goals your child’s
education, your retirement, your financial freedom they’ll just become another
auto-debit on your account.
Without purpose, even discipline loses meaning.
The Patience Problem
Many investors secretly hope their SIPs will double in five
years or make them financially free in ten.
But that’s not how compounding works.
Compounding is loyal but slow. The first ten years often
feel boring the graph looks flat, growth feels invisible, and that’s when
people lose patience.
I’ve seen many give up in year eight or nine, thinking it’s
not worth it. That’s like quitting a marathon at the 39th kilometer because you
can’t see the finish line yet.
SIPs don’t fail. People do by expecting too much, too
soon.
The Switching Syndrome
Every year, YouTube and finance influencers publish their
Top 5 Mutual Funds to Invest in This Year.
And every year, thousands of investors switch their SIPs
chasing higher returns.
What they don’t realize is that each switch resets
compounding. The more they chase better funds, the further they move from true
wealth creation.
Wealth doesn’t grow in the chase. It grows in quiet
consistency.
I often tell clients, If you’re running a 20-year marathon,
would you change your shoes every three months? They laugh and then they get
it.
The Emotional Side of SIPs
Behind every SIP lies one powerful emotion hope.
People start SIPs to feel in control of their future. They
believe small steps will create big results. And that belief is beautiful if
guided by clarity.
Whenever someone tells me their SIPs haven’t made them rich,
I ask, What does rich mean to you?
Some say a crore. Some say freedom from EMIs. Others just
want peace of mind.
The problem? Most never connect their SIPs to those goals.
They invest, but they don’t visualize what that money is meant to achieve.
It’s like boarding a train without knowing where it’s going.
You’ll move, but will you reach the right destination?
What Actually Builds Wealth
Over the years, I’ve seen three things that truly build
wealth through SIPs: time, increase, and purpose.
You give it enough time. You increase your SIP regularly.
You link it to your goals.
That’s when compounding truly starts working for you,
not just with you.
I think of a couple I’ve advised since 2008. They started
with ₹3,000 a month and increased it by 10–15% every year.
Today, their portfolio is worth over ₹80 lakhs.
They never chased returns or panicked during crashes. When I
asked how they managed it, the husband smiled and said, We treated it like rent
something that must be paid.
That mindset builds wealth. Not speed. Not timing. Just
quiet, steady commitment.
The Real Lesson
If you’ve been investing through SIPs for years but don’t
feel wealthy yet, pause and ask yourself are you really compounding, or just
repeating?
The SIP Trap isn’t about SIPs failing. It’s about
misunderstanding what they can and can’t do.
Wealth isn’t built by starting SIPs. It’s built by staying
with them long enough, increasing them over time, and linking them to your life
goals.
If you’ve been at it for ten years and still don’t see big
results, don’t lose hope. You’re already halfway there. You just need to start
doing it the right way from here.
An SIP is like a seed. Watering it once a month won’t help
if you keep digging it up to check if it’s growing. Leave it in the soil.
Nurture it. Increase the water as the plant grows. And give it time.
Someday, you’ll sit under its shade and realize your
financial peace began with one small, consistent act of faith.
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