Systematic Investment Plans (SIPs) have become a popular method for wealth creation among millions of Indians, but CA Nitin Kaushik warns that many investors misunderstand their purpose. He asserts that SIPs are not investment assets themselves but rather a disciplined system for automating investments and cultivating a saving habit. Kaushik identifies a prevalent mistake among investors: the 'set it and forget it' mentality, where they select mutual funds based on recent performance without ongoing evaluation. This approach can lead to panic during market downturns, causing investors to halt their SIPs prematurely. He emphasizes that while automation helps maintain consistency, it cannot replace the need for strategic planning and regular portfolio reviews. Kaushik illustrates that even minor improvements in annual returns can yield significant benefits over time due to compounding. He encourages investors to align their SIPs with their life goals and to conduct annual evaluations to ensure their investments remain effective.