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@article{203887,
        author = {Shaurya Kumar Taparia},
        title = {The Compounding Paradox: Why India Knows the Math but Misses the Millions},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {1},
        pages = {1120-1127},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=203887},
        abstract = {Compounding is arguably the most powerful force in personal finance. India is the second largest labour market in the world with about 625 million people working or seeking work (1). However, a report by The Indian Express stated that “although 53% of households were aware of mutual funds, actual participation remained at 6.7%”. This was said by the SEBI chairman Mr. Tuhin Kanta Pandey (2). Despite widespread financial awareness and literacy in India, the Assets under Management (AUM) of the mutual funds industry is still under 25% of the national Gross Domestic Product (GDP), this is well below the 80% average of other advanced economies, highlighting a vast opportunity to deepen retail investor participation in capital markets (2). This paper examines the factors that prevent financial awareness from becoming financial action in India through a lens of behavioural biases, structural limitations and regulatory gaps that quietly keep millions from building wealth. Using independent research and a primary survey of 52 respondents, the study finds that Despite 96.2% of respondents being aware of Systematic Investment Plans and 90.6% believing that starting early makes a significant difference to long term wealth, 66% have never had an active SIP, revealing that the barrier to investing in India is not awareness, but action. The paper concludes that the solution is simpler than what most assume and that unlocking it at a large scale can transform both individual wealth and India’s broad economic trajectory},
        keywords = {},
        month = {June},
        }