The Mercedes investor's SIP confusion

Summary: SIPs aren’t for small investors—they’re for uncertain markets. This piece debunks the myth that systematic investing is beneath wealthy investors and explains why spreading entry protects psychology and outcomes, whether you invest Rs 5,000 or several crores.

Summary: SIPs aren’t for small investors—they’re for uncertain markets. This piece debunks the myth that systematic investing is beneath wealthy investors and explains why spreading entry protects psychology and outcomes, whether you invest Rs 5,000 or several crores. A few weeks ago, I had a conversation with an investor that left me both amused and slightly alarmed. He had a couple of crores to invest--money from a property sale that was sitting in his savings account, earning nothing much. When I suggested he put this into equity mutual funds gradually through an SIP, his reaction was unexpected. He looked at me with something close to offence. "But I have ready money," he said, as if I had somehow missed this crucial fact. "I don't need to do SIP." It took me a moment to understand what had happened. In his mind, SIPs were something for people who couldn't afford to invest in one shot. Suggesting an SIP to someone with crores was like suggesting an Alto to someone who had walked into a Mercedes showroom. He wasn't opposed to the idea on any logical

This article was originally published on January 05, 2026.