Buying A Car or SIPs, New Online Debate Sparked by A Post on X
Buying A Car or SIPs, New Online Debate Sparked by A Post on X
X User Encourages Investment in SIPs Over Car Purchases, Igniting Controversy.
A Europe-based investor’s recommendation has sparked an online debate, as numerous individuals argue that life should not solely revolve around financial investments for minimal enjoyment. He compared buying a car to investing in SIPs.
On X, Sourav Dutta illustrated his point with a fictional character named Ravi, who found himself burdened with a monthly EMI of ₹ 20,000 for five years following his vehicle purchase. Dutta proposed that Ravi would have been in a more advantageous position had he allocated ₹ 20,000 each month towards mutual fund SIPs.
He further explains everything with highly specific calculations. The investor highlighted that investing ₹ 20,000 monthly in a Nifty ETF would result in a bank balance of ₹ 17 lakh after five years. In contrast, a car purchased for ₹ 10 lakh would lose value, dropping to just ₹ 4 lakh by 2030.
Dutta posted his update just yesterday, and it has already garnered over 1 million views.
₹20000/mo is the 5 year EMI of a 10L car for Ravi.
— Sourav Dutta (@Dutta_Souravd) October 15, 2024
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.
His post went viral, prompting many to take a moment to share their opinions. One user said, “Life is also short for some enjoyment, Look beyond Sip and market returns. And enjoy life for yourself and for the family you have.” Yet another comment was, “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!”.
Another interesting comment was, “ What if Ravi dies in 2 years due to any reason? What if Ravi has a family of 4 and often uses his car to drop the kids at school and him & wife at the office? He saves a lot on commute than using Ola/Uber?”
“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,” said a third user.
Dutta has previously made headlines with his contentious comments regarding finance. The investor who previously stirred up controversy by claiming that a salary of ₹25 lakh per year is “nothing” has now sparked another debate.
Participants also rejected Dutta’s suggestion that using Ola and Uber is preferable to owning a car, pointing out the numerous problems associated with ride-hailing services.
