By Admin 
SIP Investment Trend India: There is a change in the saving and investing trend of Indian investors. Earlier, bank FD, recurring deposits and gold investment were considered the first choice. At the same time, people are now inclined towards Systematic Investment Plan (SIP).
Investors are no longer investing the remaining money, rather they are withdrawing a fixed portion of their income for investment at the beginning of the month and meeting their expenses with the remaining money. Let us know about this changing trend….
Why are investors’ thinking changing?
According to a report published in Mint Hindi, there has been a big change in the financial priorities of common people in the last 5-7 years. Now people do not want to be limited to just keeping their money safe, but are insisting on increasing it.
Anand K, co-founder of Money Invested in Right Assets (MIRA Money). According to Rathi, this is not just an investment trend but an important change in the behavior of people. He has also given some reasons for this.
1. The method of investment became easier due to digital facilities
Investors have got a lot of relief due to things going digital. Earlier the investment process was long and time consuming. In which tasks like going to the bank, filling forms and taking advice were done offline.
Now mobile apps and online platforms have made it quite simple. SIP can be started in just a few clicks. Due to which people have also inclined towards SIP investment.
2. Inflation changed the thinking about savings
Earlier, people used to believe that keeping money safe in bank FD or post office schemes was enough. But with time there has been an increase in inflation. The price of goods and services has become much higher than before.
With inflation at 5-6 percent or more, such returns cannot give real gains. This realization turned people towards options like equity and now they have started believing that not only saving but also proper investment is important.
3. Power of Compounding
With the help of social media, blogs and online calculators, people are understanding that even small amounts of money can become big capital in the long run. This effect of compounding makes SIP special. When people see how regular investments grow over time, their thinking changes. They start giving priority to long term investments.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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