1 month ago

Shankar Sharma questions India's equity investing boom

Shankar Sharma questions India's equity investing boom
Has the SIP story become too one sided? Shankar Sharma questions India's equity investing boom · businesstoday.in

Shankar Sharma, a well-known investor, has raised concerns about India's growing popularity of Systematic Investment Plans (SIPs) and the belief that investing heavily in equities is a safe way to build wealth.

He argues that equities are risky and that many Indian households cannot afford to take on so much risk.

Sharma also points out that the increase in SIP investments is helping foreign investors sell their shares, which might not be good for India's economy.

While many financial experts support SIPs as a good way to invest, Sharma's views have started a debate about how much money people should invest in equities.

Key facts

SIP Inflows
Expected to reach ₹100,000 crore per month by December
Equity Returns
Average annual returns of around 14% over long periods
Recommended Equity Exposure
5-10% of disposable net worth
Social Security in India
Weaker compared to developed economies
Household Financial Buffers
Limited in India

Quotes

Shankar Sharma

Founder of GQuant Investech and veteran investor

“"My concern is not with SIPs as an investment mechanism but with encouraging the average Indian household to invest heavily in equities."”
businesstoday.in

Sources

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