With the development of the nation, the rich are becoming richer, and the poor are becoming poorer. However, in between these two extremes is the Indian middle class, which is steadily strengthening itself. Do you know how the middle class of India, which is becoming wealthier these days, is creating its wealth? You will be surprised to learn that, for the first time, the middle class in India is making big money by investing in mutual funds. The barriers of location, affordability, and transparency have now been eliminated.
Middle-Class Indians: Small Cities Are Now Moving Ahead
People in small cities are now moving away from traditional saving methods and are instead investing in equity schemes. Interestingly, while the investment of people from big cities in equity is around 50 percent, in small cities this figure has reached 75 percent. The middle class is no longer shying away from taking risks.
Middle-Class Indians: SIPs Are Becoming the First Choice of Investment
Systematic Investment Plans (SIPs) are now becoming the preferred investment option for middle-class retail investors. The increasing awareness of easy digital onboarding and the benefits of compounding are major reasons for this. It is noteworthy that the monthly SIP amount, which was ₹3,122 crore in 2016, has increased to ₹24,508 crore in 2024. After the COVID-19 pandemic, there has been a rapid increase in people’s inclination towards the equity market.
According to a recent report by Morgan Stanley, the wealth of Indian households has increased by more than ₹9 trillion in the last decade, and out of this, ₹2 trillion has come from the equity market.
