The Indian government has pledged to make the country a US$5trn economy by 2024. Janet Du Chenne talks to Sundeep Sikka about Nippon Life India Asset Management’s plans to capitalise on the growth story by offering long-term savings plans and leveraging education and new technologies
In secondary cities and towns in India, the number of Google searches for systematic investment plans (SIPs) on mobile phones increased by 1,600% between 2015 and 2018. This compares with just a twofold increase for the same search in India’s top 15 cities.
Using the wealth of information easily accessible on a smartphone, Indians in these Tier-2 cities are currently seeking new channels for their household savings, beyond physical assets such as real estate. SIPs offer them opportunities to grow investment amounts over the long term by investing as little as 100 rupees (Rs), equivalent to US$1.40 per month, based on the principles of compounding to help wealth grow at an increased rate. And, with the country aiming to become a US$5trn economy by 2024,1 these instruments are likely to be a good fit for people looking to enter long-term private savings markets as their wealth increases.
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