A SIP survey, conducted by Aditya Birla Sun Life Mutual Fund, revealed that youngsters in Mumbai are more willing to start their SIP journeys sooner as compared to other Indian cities out of which women are more willing to start new SIP in the 20s (33 per cent) than men (22 per cent). This shows that women have a higher propensity to start their SIP journey at a younger age. This is a major shift in investment behaviour of the category which is a reflection of shifting social norms driven by higher access to education, skill-building, and awareness towards financial freedom.
Both men and women as part of the respondent pool were willing to hold their SIPs for more than 10 years. Not only that, 57 per cent of respondents recommend holding SIP for more than 10 years. This is a reflection of the convenience of investing via SIPs of allocating a specific amount periodically towards wealth creation. Also reflects awareness towards spending time in the markets for wealth creation via mutual funds. Over 40 per cent of the investors started their first SIP in their 40s, 35 per cent in their 30s, and 24 per cent belong to the 20s age band. A late start to systematic investments necessitates spreading the awareness of starting early.
Mumbai came out to have the highest number of investors who started their first SIP in the 20s. This may be due to more exposure to investment and financial market information leading to higher awareness levels.
52 per cent of people started their first SIP with a specific goal, and 75 per cent of respondents believe in starting different SIPs for different financial goals in life. That aligns with the findings that a significant 85 per cent of people have invested in multiple SIPs, with 58 per cent stating they do so to diversify risk. A. Balasubramanian, MD and CEO, Aditya Birla Sun Life AMC, said, “This survey was initiated to better understand the perceptions and considerations around systematic investments and investor preferences. Not only does it reaffirm that SIP as a mode serves different needs of an investor such as budgeting, convenience and discipline but it has also captured their attention for goal-based investing.”