In this economy, it is not only parents who urge their kids to not spend needlessly and focus on bachat, but mutual funds experts too! Edelweiss Mutual Fund CEO Radhika Gupta, said light-heartedly that her plight is that as someone who sells systematic investment plan (SIP), she has to compete with the likes of Zomato and Swiggy.
In ‘The BarberShop with Shantanu’ podcast, hosted by Bombay Shaving Company founder Shantanu Deshpande, Gupta said people are resistant to putting money in mutual funds but spend generously on food-delivery platforms like Zomato and Swiggy, or content streaming and OTT platforms like Netflix.
“I know this more than anyone. I sell SIPs right? I am the one who is competing with Zomato and Swiggy! I am telling you, if you have Rs 50,000-60,000 per month, please save some! People tell me that they can’t put even Rs 100 in SIPs because they don’t have money…I mean you pay Rs 100 per month to Netflix! You know there are 40 crore people in this country who subscribe to one OTT streaming platform or do Zomato, Swiggy. That means they pay at least Rs 100 a month? But there are only 4 crore people in the country who invest in mutual funds!”
Gupta, as an after-thought said, “We are very critical of this generation. Our parents grew up in an India of scarcity, our generation grew up in an India of transition, the generation you are talking about has grown up in an India of pure abundance. So that sense to own isn’t there and there is perhaps less appreciation. But who is to say that when these 20-year-olds turn into 30-year-olds they won’t turn into a saver?”
When Deshpande asked her how will people create something and generate employment, if they can’t save enough, Gupta, disagreeing with his assessment, said that it is the wrong narrative that only entrepreneurs can add value.
“Entrepreneurship is not just shareholding. Do you think Satya Nadella (Microsoft) is not adding value? Of course, he is. Entrepreneurship is about building value. You think Microsoft is not creating jobs? Of course, it is. TCS is creating jobs, HDFC Bank is creating jobs. Do you think Deepak Parekh (former HDFC Chairman) because he chose not to start his own company or because he didn’t have 30 per cent shareholding didn’t create value, of course he created value! You have to be creating value, entrepreneurship is about creating value,” said Gupta.
She said if everyone goes off to be an entrepreneur there will be no one left to do the job in the existing companies.
Also read: ‘In India, Diwali holidays are 1,2 days’: Edelweiss’ Radhika Gupta advocates ‘longer break’