Published Jul 20, 2026 4 Min Read

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In summary

Many first-time investors believe myths that make SIP investing seem expensive, risky or complicated. In reality, an SIP is simply a way to invest a fixed amount regularly in a mutual fund scheme. Understanding the facts can help you make better investment decisions.

  • An SIP is an investment method, not a type of mutual fund. 
  • SIP investments on the Bajaj Broking website start from Rs. 100 per month for most schemes. 
  • SIP returns depend on market performance and are not guaranteed. 
  • You can usually increase, reduce, pause or stop an SIP according to the AMC's terms. 
  • Investors can choose from 4,000+ mutual fund schemes across equity, debt, hybrid, ELSS and thematic categories. 

If you are ready to begin, the Bajaj Broking website lets you complete your KYC online, compare over 4,000+ mutual fund schemes, invest through SIP or lumpsum, and track your investments using Dashboard, Portfolio, Orders and MF Profile.

Why do SIP myths confuse investors?

Many people avoid mutual funds because they hear incorrect information from friends, social media or unreliable sources. These misconceptions often prevent investors from starting early, even when they have suitable financial goals.

A Systematic Investment Plan (SIP) is simply a way to invest a fixed amount at regular intervals into a mutual fund scheme. It is not a separate investment product or fund category. When you invest through an SIP, mutual fund units are allotted based on the applicable Net Asset Value (NAV), which is calculated once every business day after market closing.

Believing SIP myths can lead to poor financial decisions.

For example, you may:

  • Delay investing for several years. 
  • Assume you need a large salary to begin. 
  • Expect guaranteed returns. 
  • Miss the benefits of disciplined investing. 
  • Avoid investing because you think expert knowledge is required. 

Understanding the facts helps you choose investments based on your financial goals instead of common misconceptions.

Myth 1 — You need a large amount to start an SIP

This is one of the most common SIP myths. Many people believe they must save thousands of rupees before they can begin investing.

Fact

You do not need a large investment amount to start. On the Bajaj Broking website, SIP investments start from Rs. 100 per month for most mutual fund schemes. This makes SIPs accessible to students, first-time investors, salaried employees, self-employed professionals and business owners.

Myth vs fact

MythReality
You need a high salary to invest.Anyone can start with a small monthly investment.
SIP is only for wealthy investors.SIPs are designed for investors with different income levels.
You should wait until you save a large amount.Starting early can help you benefit from disciplined investing over time.

A small SIP started early may contribute more towards your long-term financial goals than waiting several years to invest a larger amount. However, your investment should always match your income, financial goals and risk tolerance.

Myth 2 — SIP guarantees returns

Many investors wrongly believe that an SIP protects them from market losses or guarantees profits.

Fact

An SIP does not guarantee returns. It is only an investment method. Your money is invested in a mutual fund scheme, and the value of that investment depends on market performance.

Mutual fund returns are market-linked, and past performance does not guarantee future returns. During market declines, the value of your investment may fall. During favourable market conditions, it may increase.

Myth vs fact

MythReality
SIP always gives positive returns.Returns depend on the performance of the chosen mutual fund scheme.
SIP removes all investment risk.SIP helps you invest regularly, but it does not eliminate market risk.
SIP guarantees wealth creation.Long-term investing may improve the potential for growth, but returns are never assured.

Before investing, always check the SEBI-mandated Riskometer of the mutual fund scheme. It indicates whether the scheme carries Low, Low to Moderate, Moderate, Moderately High, High, or Very High risk, helping you assess whether it matches your financial goals and risk appetite.

Myth 3 — SIP is only for stock market experts

Many people think they need to understand the stock market before starting an SIP. This misconception stops many first-time investors from beginning their investment journey.

Fact

You do not need to be a stock market expert to invest through an SIP. An SIP simply lets you invest a fixed amount regularly in a mutual fund scheme managed by professional fund managers at the respective Asset Management Company (AMC). The fund manager makes investment decisions according to the scheme's investment objective.

Myth vs fact

MythReality
You need stock market knowledge before investing.You can start investing even if you are a beginner.
You must track the market every day.Long-term investors usually review their investments periodically instead of daily.
SIP is only for experienced investors.SIPs are suitable for both first-time and experienced investors.

Before investing, understand the scheme's objective, risk level and investment horizon. The Bajaj Broking website allows you to compare 4,000+ mutual fund schemes across equity, debt, hybrid, ELSS and thematic categories before making your investment decision.

Myth 4 — You cannot stop or modify an SIP

Some investors believe that once an SIP starts, they must continue paying until the investment period ends.

Fact

In most mutual fund schemes, you can pause, stop, increase or reduce your SIP according to the AMC's terms and conditions. An SIP is designed to provide flexibility so that you can adjust your investments if your financial situation changes.

Remember that stopping an SIP only stops future instalments. Your existing mutual fund units remain invested unless you choose to redeem them. If you redeem your units, any applicable exit load will be determined by the respective AMC, and tax implications may also apply.

What you can usually do

ActionWhat it means
Pause SIPTemporarily stop future instalments, where permitted.
Stop SIPCancel future SIP instalments while keeping your existing investments.
Increase SIPRaise your regular investment amount.
Reduce SIPLower the SIP amount, subject to scheme rules.
Redeem unitsSell your existing units at the applicable NAV, subject to exit load and tax rules.

Review the terms of your chosen mutual fund scheme before making changes, as facilities may vary across AMCs.

Myth 5 — SIP is not suitable for retirement planning

Many people believe that SIPs are useful only for short-term savings and cannot help build retirement wealth.

Fact

An SIP can be an effective way to build a retirement corpus if you invest regularly over a long period. Regular investments combined with the potential benefits of compounding may help your wealth grow over time. However, returns are market-linked and cannot be guaranteed.

A retirement plan should match your age, financial goals and risk tolerance. You should also review your investments periodically and increase your SIP amount as your income grows whenever possible.

Why SIPs may help retirement planning

  • Regular monthly investing encourages financial discipline. 
  • Long investment periods provide more time for potential compounding. 
  • You can gradually increase your SIP amount as your earnings increase. 
  • You can choose mutual fund schemes that match your retirement goals and risk profile. 
  • You can monitor your investments using the Dashboard, Portfolio, Orders and MF Profile available on the Bajaj Broking website. 

SIPs are not limited to retirement planning. They may also help you work towards other long-term goals such as buying a home, funding higher education or building long-term wealth, depending on the mutual fund scheme you choose.

How can you debunk common SIP myths?

Understanding the facts behind common myths about SIP investments can help you make better financial decisions. Before starting an SIP, learn how it works, understand the risks, and choose a mutual fund scheme that matches your financial goals.

Follow these steps

The process is simple and can usually be completed online after you complete your KYC. You do not need advanced investment knowledge to begin.

  1. Complete your KYC, as it is mandatory under SEBI regulations before investing in mutual funds. 
  2. Define your financial goal, such as retirement, education, buying a house or wealth creation. 
  3. Assess your risk tolerance by reviewing the scheme's SEBI Riskometer. 
  4. Compare mutual fund schemes based on their investment objective, risk level, expense ratio and historical performance. 
  5. Choose between SIP and lumpsum based on your financial situation. Remember, SIP is an investment method, not a fund type. 
  6. Decide your SIP amount. On the Bajaj Broking website, SIP investments start from Rs. 100 per month for most schemes. 
  7. Review your investments periodically and increase your SIP amount whenever your income grows. 

Mutual funds are subject to market risk. Please read the scheme-related documents carefully before investing.

Conclusion

Many people delay investing because they believe SIP myths that are not true. The reality is that an SIP is simply a disciplined way to invest regularly in a mutual fund scheme. You do not need a large amount to start, you do not need to be a market expert, and an SIP does not guarantee returns. Understanding these facts can help you make informed investment decisions.

Before investing, compare mutual fund schemes based on their investment objective, risk level, expense ratio and suitability for your financial goals. On the Bajaj Broking website, you can complete your KYC online, compare 4,000+ mutual fund schemes across equity, debt, hybrid, ELSS and thematic categories, invest through SIP or lumpsum, and use the Dashboard, Portfolio, Orders and MF Profile to track your investments.

Frequently asked questions

Is it true that SIP always guarantees positive returns?

No. An SIP does not guarantee positive returns. An SIP is only an investment method that allows you to invest a fixed amount regularly in a mutual fund scheme. Your returns depend on the scheme's market performance and are therefore market-linked. Past performance does not guarantee future returns. You should also review the scheme's SEBI Riskometer before investing.


The minimum SIP amount depends on the mutual fund scheme. On the Bajaj Broking website, SIP investments start from Rs. 100 per month for most mutual fund schemes. This allows you to begin investing with a relatively small amount while choosing from 4,000+ mutual fund schemes across different categories.


In many mutual fund schemes, you can pause or stop your SIP according to the AMC's terms and conditions. Stopping an SIP prevents future instalments but does not automatically redeem your existing mutual fund units. If you redeem your investments, any applicable exit load and tax rules will apply.


No. You do not need to monitor the stock market every day to invest through an SIP. Since an SIP invests a fixed amount at regular intervals, many long-term investors review their portfolios periodically instead of tracking daily market movements. You can monitor your investments through the Dashboard, Portfolio, Orders and MF Profile on the Bajaj Broking website.


Yes. Many people postpone investing because they believe SIPs require large investments or guarantee returns. These misconceptions can delay long-term wealth creation. Starting early and investing regularly may help you build a retirement corpus over time, although mutual fund returns remain market-linked and are never guaranteed.


An SIP is available to anyone who meets the eligibility requirements of the mutual fund scheme. Salaried individuals, self-employed professionals, freelancers and business owners can all invest through an SIP. The investment amount, frequency and scheme should match your financial goals and risk appetite.


SIP myths may lead to unsuitable financial decisions because they encourage unrealistic expectations or unnecessary fear. For example, believing that SIPs guarantee returns or require expert knowledge may prevent you from choosing investments that match your financial goals. Always rely on information from trusted sources and compare schemes carefully before investing.


You can debunk common SIP myths by understanding how mutual funds work, checking the scheme's investment objective, reviewing the SEBI Riskometer, and comparing different schemes before investing. The Bajaj Broking website helps you compare 4,000+ mutual fund schemes, complete your KYC online, invest through SIP or lumpsum, and estimate potential investment growth using the SIP Calculator.

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