Systematic Investment Plans (SIPs) have significantly transformed the financial landscape in India, emerging as a popular method for wealth accumulation and financial security. As more investors shift away from traditional assets, the conversation surrounding SIPs has intensified. Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, has been at the forefront of this dialogue, advocating for regular investments in mutual funds as a path to long-term financial health.
Recently, Gupta shared her insights on X, urging a shift in how wealth is perceived in India, particularly in regions like Delhi NCR, where real estate has traditionally been viewed as the ultimate symbol of financial success. In a tweet, she reflected on how property ownership has been a status marker in the past but argued that this should change. According to Gupta, the new measure of wealth should be the size of one’s monthly SIP contributions rather than the number of properties owned.
"Once upon a time in Delhi NCR, where I come from, the measure of wealth was the number of properties you had. Showing off meant talking about one plot here, one flat there, and another office space close by. With India financialising, the new measure should be the size of your monthly SIP book," she wrote on X (formerly Twitter). Gupta encouraged young investors to embrace this change, suggesting that conversations about investment should focus on SIPs rather than real estate. "I would love to hear young people say, 'Meri toh mahine ki 1L ki SIP hai (I invest Rs 1 lakh monthly in SIP), what about you?'"
Needless to say, Gupta's post went viral and triggered a flurry of reactions from social media users. A majority of people were of the opinion that SIPs and wealth in general is not something to "show off".
"As I read this, I get where you are coming from. But lately I realised, the best way to live life is be silent, slow and steady. I don't get the showoff culture anymore," a user wrote. Another user commented, "Madam, I understand you are trying to promote mutual funds which is your bread and butter. And I agree that SIPs are important. But no one should be talking about how much SIPs they are doing. If you disagree me with, please let us know why your monthly SIP is. Thanks in advance."
I would love to hear young people say: 'I am happy'. Showing off wealth or this mad obsession with wealth is the single biggest reason why we are in a health emergency," a third user remarked.
"Happiness and health are real measures of wealth. What's the point in having 1L a month SIP when you are needed to work 70 hours a week in a caustic environment for the SIP which destroys your health and happiness?" a fourth questioned.
Meanwhile, Gupta has been a vocal advocate of SIPs in multiple forums. Earlier this year, during an appearance on the set of "Shark Tank India", she emphasised the importance of starting SIPs early and encouraged the show's staff to consider SIPs as part of their financial planning.
In July, she introduced the concept of "dal-chawal" funds, underscoring the importance of building a diversified portfolio. Through this analogy, Gupta highlighted that just as dal-chawal (lentils and rice) form the basic sustenance in Indian households, broad-based funds form the foundation of a strong investment portfolio. She cautioned against concentrating investments in narrow sectors, particularly during volatile market conditions, and instead advised investors to opt for diversified funds that provide long-term stability.
What are SIPs?
Systematic Investment Plans (SIPs) are a method of investing in mutual funds, allowing investors to invest a fixed amount at regular intervals, typically monthly. Through SIPs, individuals can benefit from the power of compounding, as their investments grow over time. SIPs also enable investors to average out market volatility by spreading their investments across different market conditions.
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