New Delhi, Dec. 11 -- Anyone who enters the arena of equity investing, even a novice, knows that volatility is a part and parcel of being there. Over the years, we have also heard that systematic investment plans (SIPs) help us to tide over this volatility and create wealth.

"The biggest myth is that SIPs are a magic wand for producing market-beating returns," says Harsh Gahlaut, Co-founder & CEO, FinEdge. The truth is that SIPs are a tool to inculcate the discipline of saving first and spending later.

SIPs allow an investor to accrue substantial savings over time, which, when compounded, can create wealth. Great returns result from a strong investment process, and SIPs provide the ideal platform for one.

There are certain other miscon...