This sounds simpler than it is. When you are doing an SIP on equity mutual funds, you can decide a fixed sum like Rs.5000 per month or Rs.10,000 per month based on your investable surplus and your goals. When you are investing directly in equities, you will come across stocks with different price levels and with different levels of liquidity. In the Indian market you have stocks priced below Rs.100 and there are stocks that are priced above Rs.20,000. How do you run a constant SIP across such a wide divergence of stocks is the big challenge? An equity MF-SIP solves the problem as you need not worry about what stocks to buy. You just allocate your fixed sum each month and the fund manager takes care of the rest. More often than not, for most investors like in the case of all of us, the last question is the clincher. When you can create wealth by systematically investing in an equity MF, why take the risk and hassle of trying to invest in equities yourself. The scales are clearly tilted in favour of doing an SIP through equity mutual funds.