This study examines how retail investors’ risk perception and financial literacy shape investment decision making in Systematic Investment Plans (SIPs). SIPs are one of the most widely used mutual fund investment approaches among small investors because they promote disciplined investing and rupee-cost averaging. However, participation and continuity in SIPs are often influenced by investors’ understanding of financial products and their tolerance for uncertainty. The study proposes a quantitative model in which financial literacy and risk perception independently influence SIP decision making and jointly affect long-term investment commitment. Primary data may be collected from retail investors through a structured questionnaire and analyzed using correlation and regression techniques. The expected findings suggest that higher financial literacy improves rational investment decisions, while elevated risk perception may reduce investment confidence unless moderated by investor knowledge. The paper contributes to behavioral finance literature by explaining how cognitive and psychological factors influence SIP adoption among retail investors.