X User Advising People To Invest In SIPs Instead Of Buying Car Sparks Debate

An investor has sparked a discussion online after advising people to put money in SIPs instead of buying a car. Taking to X (formerly Twitter), Sourav Dutta gave an example of a fictional character named Ravi, who was stuck with an EMI of Rs 20,000 per month for five years after purchasing a vehicle. Mr Dutta suggested that Ravi would have been better off had he invested Rs 20,000 per month into mutual fund SIPs. The investor explained that an SIP of Rs 20,000 per month in Nifty ETF would grow to a bank balance of Rs 17 lakh at the end of five years. A car, on the other hand, which would have cost Rs 10 lakh would depreciate to a value of Rs 4 lakh by 2030. 

"Rs 20000/mo is the 5 year EMI of a 10L car for Ravi. Instead, Ravi puts Rs 20000/mo for 5 years in Nifty ETF SIP. First decision gives him a car worth Rs 4L in 2030. Second decision gives him Rs 17L of bank balance in 2030. Life is about the choices we make," Mr Dutta wrote. 

Take a look below: 

₹20000/mo is the 5 year EMI of a 10L car for Ravi.

Instead, Ravi puts ₹20000/mo for 5 years in Nifty ETF SIP.

First decision gives him a car worth ₹4L in 2030.

Second decision gives him ₹17L of bank balance in 2030.

Life is about the choices we make.

— Sourav Dutta (@Dutta_Souravd) October 15, 2024

Mr Dutta shared his post just a day back. Since then it has accumulated more than 1 million views. His advice has triggered a discussion online, with many people pointing out that the purpose of life is not just to invest money to live a little. 

"Life is also short for some enjoyment. Look beyond Sip and market returns. And enjoy life for yourself and for the family you got," commented one user. 

"Not everything in life is about saving money. Also, if everyone thinks like Ravi, then the economy won't grow, and the stock market won't perform, and Ravi will not even make FD returns!" said another. 

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"By this logic, we can invest most of our money in SIP and forgo the things that give us convenience and pleasure to have a great bank balance after several years," expressed a third user. 

"First decision gives him immense satisfaction of owning a car, joy of taking his parents and family in a car. If he sticks to second decision the he has exactly 50% probability of dying some day in those 5 years of investing in Nifty SIP. Poor advise again. Don't mix emotions with finances," wrote a fourth. 

"The problem here is that, when Ravi wants to go somewhere with his family at his convenient time without bargaining with the Ola or Uber fellow, he can't print the ETF papers, sit over it and ask it to fly. It will not take him anywhere," quipped another.