Behavioural Drivers of SIP Adoption: A SEM-Based Analysis of Investment Motivation in Mutual Funds"

Abstract

Systematic Investment Plans (SIPs) have become a popular choice for people looking to invest in a disciplined and goal-focused way. This study looks at the key behavioural factors that influence why investors choose SIPs, using a method called Structural Equation Modelling (SEM). Based on responses from 285 mutual fund investors, the study used statistical techniques like Exploratory and Confirmatory Factor Analyses to confirm the importance of four main factors: perceived value, ease of use, trust, and financial benefits. The results show that all these factors play a major role in SIP adoption, with perceived financial benefits having the biggest influence. These insights can help mutual fund companies and fintech platforms improve how they connect with investors by focusing on what really matters to them—like trust and ease of use. The study also adds to the existing research by showing how these psychological and practical factors work together in shaping investment decisions.