'Where can I get a 10% + CAGR on my investments?': A startup founder's stark warning for SIP investors

Every paycheck tells a story. For many, it’s the same cycle: work long hours, cover monthly expenses, and channel a fraction into Systematic Investment Plans (SIPs), hoping it grows enough to secure their future. 

But is that SIP money really working for you? Or is it quietly bailing out Foreign Institutional Investors (FIIs)?

In the first 21 days of January, FIIs sold Indian equities worth ₹56,000 crore. While global investors cash out, SIP inflows are surging. Why? As Akshat Shrivastava, founder of Wisdom Hatch, explains, "SIP money is very powerful." But that power must beat inflation to secure your financial future.

For most investors, inflation is not the government-reported average. Shrivastava notes, "Inflation for SIP doers is at least 10%. Check medication inflation in India—it’s 14%." Unless you’re benefiting from subsidized housing or government freebies, your effective inflation rate remains steep.

So, where can you achieve 10%+ post-tax CAGR on investments? The options are few and shrinking:

• Fixed Deposits: ~5%
• Provident Fund/EPF: 8-9%
• Real Estate: Out of reach for many

The answer, according to Shrivastava, lies in equities. But even this comes with hurdles. Indian investors traditionally choose between domestic equities through mutual funds or U.S. equities via similar routes. Yet, investing abroad is becoming increasingly restricted. From the 20% TCS rule on foreign remittances to dwindling avenues for cross-border investments, regulatory changes are tightening the noose.

In Shrivastava’s words: "Crypto was killed in 2021-2022. Now, even the option of investing abroad will be taken away." Retail investors are turning to SIPs in Indian equities because, as he says, “most retail people have no other choice.”

As your SIP contributions rise, remember the core question: Is your money beating inflation, or just plugging gaps in the financial system? Shrivastava’s message is clear—invest smart, because the stakes are higher than ever.