As the new financial year begins, a thought-provoking suggestion has emerged from a fund manager advocating for a financial inclusion initiative that could have a long-term impact on domestic workers. The idea revolves around offering a small salary increase to household staff—such as domestic helpers, drivers, and security personnel—and channeling a portion of it into a Systematic Investment Plan (SIP) in an index or diversified equity fund.
The proposition highlights that an additional Rs 500, Rs 1,000, or Rs 2,000 per month, based on affordability, could be directed toward a SIP. Over 10-15 years, this approach could help accumulate significant savings and provide financial security to workers who often lack structured investment avenues. "Pass forward the good deeds," the fund manager urged in the viral Twitter post, emphasizing the importance of financial literacy among all sections of society.
Bridging the Financial Gap
Currently, India has about five crore unique mutual fund investors. The fund manager pointed out that if every investor encouraged one worker from the economically vulnerable segment to invest in mutual funds, financial inclusion in the country could see substantial growth over the next five years. "Each strata should participate in the India story over the long term," they noted, underlining the necessity of financial participation across income levels.
Mixed Reactions from Netizens
The proposal received a mixed response from social media users. Some supported the idea and shared instances where they had encouraged their household staff to start investing through SIPs. One person mentioned successfully convincing their office assistant to begin investing in a SIP from April, while another shared that they had set up a similar scheme in 2005, offering their employees a Rs 500 monthly SIP contribution as a bonus on top of their salary.
On the other hand, some users expressed skepticism about the suitability of equity investments for domestic workers. They argued that while stock markets can yield good returns, they may not be the right choice for everyone—particularly those unfamiliar with market fluctuations. Some felt that safer, fixed-income investment options would be more appropriate. Others recounted personal experiences where they had attempted to introduce SIPs but faced difficulties explaining market volatility. Many noted that women workers often preferred traditional savings methods like gold chit funds, which felt more secure and tangible to them.
Additionally, some individuals questioned why financial planning should dictate how domestic workers manage their income. They argued that these workers should have the freedom to spend their earnings as they wish—whether on necessities, leisure, or personal goals—rather than being directed toward mutual fund investments. Many believed that domestic workers tend to trust financial products that come with guarantees, and their immediate priorities, such as their children’s education, should take precedence over long-term investments.
Despite the differing opinions, the discussion shed light on the broader issue of financial literacy and inclusion. Many acknowledged that the key challenge lies in shifting perspectives, as a large section of domestic workers continues to rely on familiar savings tools like fixed deposits or gold. Some who had attempted to introduce the concept of SIPs found that workers were hesitant and preferred more conventional investment methods that felt safer and more reliable.
The proposition highlights that an additional Rs 500, Rs 1,000, or Rs 2,000 per month, based on affordability, could be directed toward a SIP. Over 10-15 years, this approach could help accumulate significant savings and provide financial security to workers who often lack structured investment avenues. "Pass forward the good deeds," the fund manager urged in the viral Twitter post, emphasizing the importance of financial literacy among all sections of society.
Bridging the Financial Gap
Currently, India has about five crore unique mutual fund investors. The fund manager pointed out that if every investor encouraged one worker from the economically vulnerable segment to invest in mutual funds, financial inclusion in the country could see substantial growth over the next five years. "Each strata should participate in the India story over the long term," they noted, underlining the necessity of financial participation across income levels.
As we step into a new financial year, give a small raise to ur domestic help,driver security n others.
— Gurmeet Chadha (@connectgurmeet) March 29, 2025
500-1000-2000 Rs as per ur ability & Make them start a SIP in an index or a diversified equity fund.
Show the maths for 10-15 yrs
As they say “Pass Forward the good deeds”
Mixed Reactions from Netizens
The proposal received a mixed response from social media users. Some supported the idea and shared instances where they had encouraged their household staff to start investing through SIPs. One person mentioned successfully convincing their office assistant to begin investing in a SIP from April, while another shared that they had set up a similar scheme in 2005, offering their employees a Rs 500 monthly SIP contribution as a bonus on top of their salary.
On the other hand, some users expressed skepticism about the suitability of equity investments for domestic workers. They argued that while stock markets can yield good returns, they may not be the right choice for everyone—particularly those unfamiliar with market fluctuations. Some felt that safer, fixed-income investment options would be more appropriate. Others recounted personal experiences where they had attempted to introduce SIPs but faced difficulties explaining market volatility. Many noted that women workers often preferred traditional savings methods like gold chit funds, which felt more secure and tangible to them.
Additionally, some individuals questioned why financial planning should dictate how domestic workers manage their income. They argued that these workers should have the freedom to spend their earnings as they wish—whether on necessities, leisure, or personal goals—rather than being directed toward mutual fund investments. Many believed that domestic workers tend to trust financial products that come with guarantees, and their immediate priorities, such as their children’s education, should take precedence over long-term investments.
Despite the differing opinions, the discussion shed light on the broader issue of financial literacy and inclusion. Many acknowledged that the key challenge lies in shifting perspectives, as a large section of domestic workers continues to rely on familiar savings tools like fixed deposits or gold. Some who had attempted to introduce the concept of SIPs found that workers were hesitant and preferred more conventional investment methods that felt safer and more reliable.
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