Investor's 'SIPs Over Purchasing New Car' Suggestion Sparks Debate: 'Look Beyond Market Returns'

A piece of investment advice by an X (formerly Twitter) user has sparked a debate on the social media platform. Sourav Dutta, an investor and trader by profession, suggested that people should invest in systematic investment plans (SIPs) over purchasing a car.

He explained his point with an example of a fictional character named Ravi. According to his tweet, Ravi is stuck with a 5-year-long EMI scheme that costs him Rs 20,000 per month for a car worth Rs 10 lakhs. If investing the same amount for five years in Nifty ETF SIP, Ravi would have yielded better financial results. “First decision gives him a car worth ₹4L in 2030. The second decision gives him ₹17L of bank balance in 2030. Life is about the choices we make,” Dutta wrote.

The post has gained more than 1 million views, sparking a widespread discussion on X. While some argued that the purpose of life is not just about investment, others questioned the logic behind his calculation.

A user asked, “What about the expenses he made on a cab in those 5 years,” to which Dutta said, “He would have spent petrol in car also. Plus difference is 13L.”

Another commented, “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 similar comment read, “Life is also short for some enjoyment Look beyond Sip and market returns. And enjoy life for yourself and for the family you got.”

“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 kids at school and him & wife to office? He saves a lot on commute than using ola/uber,” read a reply.

This is not the first time that Sourav Dutta’s view on investment and finance has triggered a social media debate. In his previous viral post, Dutta argued that a salary of Rs 25 lakh per annum is insufficient to comfortably support a family of three.

According to Dutta, a family of three would spend Rs 1 lakh on essential expenses like EMI or rent.

He then allocated Rs 25,000 for discretionary spending like dining out, movies, OTT subscriptions, etc.

The remaining Rs 25,000 would go towards emergencies or medical expenses, leaving nothing for savings or investments, Dutta suggested.