Deepak Shenoy, Founder and CEO of Capitalmind Mutual Fund, has discussed SIPs on X. The post has gone viral, already garnering more than 65,000 views.<\/p>\n
Shenoy noted monthly SIP investments had now reached \u20b931,000 crore nationally. Shenoy argued the primary benefit wasn’t actually price averaging, contrary to popular belief.<\/p>\n
Most people have a monthly SIP; Deepak Shenoy explained why. Most people earn income monthly, naturally suiting monthly investing.<\/p>\n
\u201cThe main reason is: most of us earn money monthly. End of story. You earn, you spend, you save, you invest. That cycle happens monthly, and therefore you SIP monthly,\u201d the financial entrepreneur wrote.<\/p>\n
Also Read<\/strong> | More mutual funds, more diversification? Why this common belief can be wrong<\/a><\/p>\n However, there is a secondary reason supporting SIPs. Money left unspent often gets spent eventually, he explained.<\/p>\n SIPs help people invest first, spending only whatever remains afterwards. This forced discipline ultimately helps individuals build wealth over time.<\/p>\n \u201c…you invest first and spend later, usually. So you end up spending only what’s left with you, and that \u2018forced\u2019 investing of sorts helps you build wealth for later,\u201d he wrote.<\/p>\n According to Shenoy, lump-sum investing also works well for many. Some months bring surplus income while others bring financial constraints. Either approach, he suggests, relies fundamentally on consistent saving behaviour.<\/p>\n \u201cMany of us have the discipline to do an SIP manually every month – otherwise called \u2018lump sum\u2019 investing<\/a>. This is also fine, and probably better because some months you will have way more money, and some you will be on kadki mode,\u201d he commented.<\/p>\n Also Read<\/strong> | How Bankipur MLA Prashant Kishor invests his wealth<\/a><\/p>\n According to him, early investing gains come primarily from savings themselves. Growth from returns becomes significant only in later years.<\/p>\n Initially, portfolio value largely reflects money actually saved and invested. Eventually, incremental savings matter less compared to the growing overall corpus.<\/p>\n \u201cSave a little more every month or every year, and you’ll build wealth faster. But building wealth isn’t the goal, really, for you. We, as mutual funds<\/a>, help you build wealth\u2026\u201d he advised.<\/p>\n \u201c…but, your story has three parts:<\/p>\n Part 1: You save and invest your money<\/p>\n Part 2: The money grows because of returns<\/p>\n Part 3: You spend the money\u201d<\/p>\n Shenoy believes people mustn’t forget this crucial final step. He reminded readers that wealth would not define someone’s overall life. Instead, life itself remains what truly matters most.<\/p>\n