Mercedes Benz India says systematic investment plans (SIPs) are a competitorLuxury car maker Mercedes Benz India has sparked an atypical debate that has surprised mutual funds.For most Indians, savings takes precedence over spending on luxuries, even for those with substantial disposable income. Mercedes India, however, finds systematic investment plans (SIPs), a preferred savings instrument, as a competitor.In a report published by the Times of India, Santosh Iyer, Sales and Marketing Head, Mercedes Benz India, has said that the Rs 50,000 that a potential customer invests into a SIP if diverted towards the luxury car market, will see business explode.The report instantly attracted reactions from many mutual fund enthusiasts.Nilesh Shah, Managing Director, Kotak AMC, nailed the debate saying SIPs create financial freedom for investors to buy what they want.“At Rs 50,000 EMI, it is not possible to buy a luxury car. At Rs 50,000 SIP for a reasonable time, it is possible to buy a luxury car. SIPs,” he tweeted through his Twitter handle.“The SIPs are our competitors. I tell my team if you are able to break that (SIP investment) cycle, then exponential growth is given,” Mr Iyer is quoted as saying in the report.At Rs 50000 EMI it isn’t possible to buy a Luxury car.At Rs 50000 SIP for a reasonable time, it is possible to buy a Luxury car.SIPs are creating financial freedom for investors to buy what they want. pic.twitter.com/mEWPGxidvh— Nilesh Shah (@NileshShah68) November 28, 2022According to data from the Association of Mutual Funds in India (AMFI), investments through SIPs stood at Rs 13,040 crore in October compared to Rs 12,976.34 crore in September.The analogy between luxury purchases and savings has attracted many curious reactions on Twitter. Many expect seasoned economists to wade into the debate with their comments.Featured Video Of The DaySensex Crashes Over 500 Points, Extending Losses For Third Straight Day
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