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This city has highest number of investors who started their SIP journey in 20s: Report

An SIP survey, which was conducted by Aditya Birla Sun Life Mutual Fund, also showed almost 50% of people think SIPs help in building long-term corpus (iStock)Premium
An SIP survey, which was conducted by Aditya Birla Sun Life Mutual Fund, also showed almost 50% of people think SIPs help in building long-term corpus (iStock)

  • Over 40% of the investors started their first SIP in their 40s, 35% in their 30s, and 24% belong to 20s age band, the SIP survey shows
  • Women are more willing to start new SIP in 20s (33%) than men (22%), it also adds

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Youngsters in Mumbai are more willing to start their SIP journeys sooner as compared to other Indian cities, a recently published survey revealed. It also said woman are more willing to start SIPs in their 20s than men, showing an major shift in investment behaviour. 

The survey comes at a time when the mutual fund industry’s monthly SIP book size reached an all-time high of close to 10,000 crore as per latest data released from the Association of Mutual Funds in India (AMFI).

An SIP survey, which was conducted by Aditya Birla Sun Life Mutual Fund, also showed almost 50% of people think SIPs help in building long-term corpus and whopping 83% respondents who have invested in SIPs themselves said they will recommend it to others as well. 

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."

“52% people started their first SIP with a specific goal, and 75% of respondents believe in starting different SIPs for different financial goals in life. That aligns with the findings that a significant 85% of people have invested in multiple SIPs, with 58% stating they do so to diversify risk."

Here is what the survey reveals: 

  • Over 40% of the investors started their first SIP in their 40s, 35% in their 30s, and 24% belong to 20s age band. Late start to systematic investments necessitates spreading the awareness of starting early.
  • Women are more willing to start new SIP in 20s (33%) than men (22%). This shows that women have a higher propensity to start their SIP journey in their 20s. 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% of respondents recommend to hold 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.
  • Mumbai came out to have the highest number of investors who started their first SIP in 20s. This may be due to more exposure to investment and financial market information leading to higher awareness levels.
  • Across cities the number for people starting their first SIP in their 30s remained broadly in a similar range.
  • SIPs help maintain investment discipline remains the single-most important reason for investors to choose the systematic way of investing.
  • 48% of people agree to all the stated factors to start their first SIP which included – helps to plan monthly budget, convenient method, and investment discipline.
  • 30% in 20s, 38% in 30s & 34% in 40s agree that SIP helps to maintain investment discipline
  • 52% people started their first SIP with a specific goal, and 75% of respondents believe in starting different SIPs for different financial goals in life. Goal-based investing remains a popular theme among investors

 

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