MAM
Marketers eye India’s burgeoning youth population
MUMBAI: India‘s burgeoning youth population is the core attraction of every marketer. And reshaping the marketing industry is the fact that 65 per cent of the Indian population is youth, which is expected to grow by more than 47 million by 2020.
Uninor (Unitech Wireless) corporate affairs executive vice president Rajiv Bawa affirmed that despite his company being the 13th in the Indian telecommunications market, it did well by targeting the Indian youth population.
Uninor‘s slogan of “ab mera number hai” was conceived for the youth.
“Since inception, we have used every marketing tool and strategy to attract the youth,” said Bawa, while speaking at the third Global Youth Marketing Forum.
Future Media CEO and Future Group president – customer strategy Sandip Tarkas agreed that youth would dominate the economic scene in India for a very long time. He asserted that the youth in India is westernised but still respects Indian values.
“Though Indians just like their Western counterparts want to be part of the sub-culture, they still respect their parents and aren‘t really rebellious,” he averred.
Tarkas also said that many retail shops are today built for the youth – at least most of them have a section for the young ones. Latest technologies, fashion and music are a part of this offering.
Speaking on youth revolution in the mobile handset industry, BYOND Mobiles marketing and sales vice president Shripal Gandhi said the power of youth population has encouraged them to create handsets meant for the young. He said that his company‘s handsets have features like high-battery life, games and music, which is most desired by the young.
Gandhi also emphasised the importance of North-eastern part of the country, which he referred to as a “virgin” market with lot of opportunities.
BBDO / Proximity India chief executive officer Ajai Jhala explained the country‘s youth in a very philosophical manner. Before Independence Indian youth had the ambition of gaining independence for the country. Post Independence due to Socialist-styled economy, that motive was transformed into fighting the corrupt system and red tape.
After liberalisation, this was changed forever, Jhala said. “Today‘s youth is now more self-centred and wants to know ‘what in it for me‘. Indian youth has become more practical and materialistic,” he elaborated.
Building long-term wealth through compounding is a gradual process. In the early stages, it may feel like your investment corpus isn’t growing significantly. However, over time, the magic of compounding begins to show its effect. Investing requires consistency and perseverance, especially since market fluctuations can test your patience.
Mutual Funds offer a convenient feature called the Systematic Investment Plan (SIP), which allows you to invest a fixed amount at regular intervals, ensuring continuity in your investment journey. SIPs can be tailored to suit any financial goal—short-term, medium-term, or long-term.
What is a Systematic Investment Plan (SIP)?
A SIP is a method of investing in open-ended mutual funds by selecting a fixed amount and a preferred date for investment. You can start with as little as Rs 500 or Rs 250 per month (known as a Choti SIP), with no upper limit. SIPs are flexible—you can pause, modify, or stop them as needed, subject to fund house terms.
Many mutual funds also offer a Top-Up SIP option, allowing you to increase your SIP amount annually by a fixed percentage. This helps you accelerate your savings and reach your financial goals sooner.
How Does a SIP Work?
SIP investing is simple and automated. Once you set up a mandate, the chosen amount is deducted from your registered bank account and invested in the selected fund.
Key Benefits of SIP Investing
• Automated monthly investments
• Benefit from rupee cost averaging during market volatility
• Flexibility to change SIP date, amount, pause or cancel
• No need to time the market
• Participate in both market upsides and downsides
Things to Consider Before Starting Your First SIP
Before starting a SIP:
• Define your financial goals and timeline
• Assess your risk appetite
• Decide on asset allocation (equity, debt, gold, international funds, REITs, etc.)
• Choose suitable mutual funds based on your allocation
• Use SIP calculators to determine the monthly investment needed to reach your goal
Building Wealth the Simple Way
For new investors, SIPs offer a disciplined and convenient way to invest toward life goals. With a wide range of mutual fund schemes available, selecting the right fund is key to building a strong portfolio. If you’re unsure where to begin, consult a financial advisor for guidance.
FAQs
Are SIPs better than one-time investing?
Equity markets tend to be volatile. Hence, SIP offers the benefit of rupee cost averaging. This ensures that you get more units when the markets fall and less units when it rises, thereby averaging the cost per unit of your investment. In fact, SIP may reduce the risk of timing the market so that your investment can benefit from volatile markets.
How does a SIP actually work for new investors?
A SIP works by investing a fixed amount in a mutual fund at regular intervals. Once the mandate is set up, the amount is automatically debited from your bank account and invested in the chosen fund, helping you invest in a disciplined manner without tracking market movements.
Should I pause my SIP when market is falling?
Investing through SIP when markets are falling helps you accumulate more mutual fund units. Every time the market falls, your SIP buys more units. In case of negative returns, the loss you see is only notional, i.e., it will be real if you decide to sell off your holdings. Benefits of a SIP are seen over the long term when you keep investing regularly over different market cycles.
Can SIP investment be stopped and restarted later?
You can pause or stop your SIP at any time, subject to the terms of the fund house. The units you have already invested remain unaffected, and you can restart the SIP later based on your requirements.
How much amount should I invest through SIP?
The SIP amount should reflect your goals. Minimum investment amount to start a SIP may vary across Fund Houses.
What should be the ideal SIP date every month?
You can start a SIP on any day of the month, depending on the available options that vary across fund houses.
How long should I continue my SIP Investment?
Start an SIP with a financial goal in mind like buying a car or higher education of your child. The time to fulfil your financial goal should be the tenure of your SIP.
Can I make changes in my SIP investment later?
You can change the date of debit and frequency, modify the SIP amount, and also pause or stop your SIP, depending on the available options that vary across fund houses.
How do I begin?
Where you invest depends on your risk profile and investment horizon. You should consult a trusted financial advisor who can help you invest to plan for your life goals.
How can I achieve my goals using SIP?
Decide your financial goal and the amount of money you need to achieve it. Then, you can use a SIP calculator to find out the amount you will need to invest regularly to meet your financial goal.
Disclaimer:
1Past performance may or may not be sustained in future and is not a guarantee of any future returns.
Mutual Funds do not have a fixed rate of return and it is not possible to predict the rate of return.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This is part of an investor education and awareness initiative by PGIM India Mutual Fund.
