So, systematic investment plans (SIPs) are a method of investing for people who commit to a fixed sum of money at regular intervals over a period of time in mutual funds. 

SIPs are not limited to small investors and are becoming increasingly popular as a way to create wealth in a structured manner. An SIP follows the same principle as the adage, “little drops of water make a mighty ocean,” as it enables investors to build a sizeable corpus over time even with small sums invested.

Through an SIP, investment is made at different prices over the term chosen, allowing investors to manage market volatility over time. To understand this concept better, the Association of Mutual Funds in India (AMFI) uses the analogy of driving a car on the street, where you might cruise if it’s a clear road or slow down if there are bumps or speed breakers on the road. Thus, the average speed is neither too fast nor too slow and the driver is able to navigate the highs and lows. 

Similarly, the stock market is unpredictable and it is difficult to ascertain when to buy and when to sell a stock. Through an SIP, an investor can navigate the highs and lows of the stock market.

How does this happen?

As the amount is paid in instalments, investors buy more units when the price is low and fewer units when the price is high. 

Over time, the average cost of acquisition per unit may come down, which is known as rupee-cost averaging. This is a key advantage that SIPs provide investors, as it can help investors get the maximum possible returns in a volatile market environment.

Rupee-cost averaging works best for investors who are either beginners or don’t have the time or knowledge to monitor the financial markets. Moreover, regular investing can reduce the risk of investing a large amount at a higher valuation when the stock market is doing well or panic selling when the market is on a downward trajectory.

Things to remember before you start SIP

Prior to investing in a mutual fund SIP, it is important to read the investment objective and whether it aligns with your investment goals. 

Check whether the scheme allows for SIP. Decide on how much you can invest realistically in a SIP and the periodicity or the regular intervals at which you can make the investment (monthly, quarterly etc.), the date and method of payment.  

Equity funds

Equity funds invest in a portfolio of equity shares and equity-related instruments, and thus, the risk and return from the scheme will be similar to those associated with direct investment in equity markets.

Equity funds can be classified as active funds, passive funds, diversified funds, and funds based on market capitalisation.
Active funds are funds that look to provide higher returns than the market benchmark indices Sensex and Nifty, while passive funds mirror the benchmark indices buying the constituent companies in the same weight as the indices.

In diversified funds, the investment is spread across sectors, categories, and different sizes of companies. As the investment is diversified, it generally has lower risk as the poor performance of one or two stocks won’t weigh as heavily on the investment portfolio.

Mutual funds also offer schemes based on the market capitalisation of companies. 

Large cap funds invest in stocks of large, liquid blue-chip companies with stable performance and returns and these companies have market capitalisation of more than Rs 20,000 crore. Mutual fund houses are mandated to invest around 80 per cent of the investment in equities of such companies, if the scheme is specified as a large cap scheme. 

Mid-cap funds are investments in companies with market capitalisation of above Rs 5,000 crore and less than Rs 20,000 crore, which have potential for higher growth and returns. But these companies could get impacted by economic downturns and the risk involved is higher than the investment in blue-chip or large cap stocks. To be classified as a mid-cap fund, at least 65 per cent of the total assets should be invested in equity instruments of such companies.

Small cap funds are the investments in companies with small market capitalisation (less than Rs 5,000 crore), with high growth potential. However, the risks involved is higher than large cap and mid-cap funds. To be classified as a small-cap fund at least 65 per cent of the assets need to be invested in such small cap companies.

Fund houses also offer a combination of large and mid-cap funds where at least 35 per cent has to be invested to stocks of large cap and mid-cap companies each. 

Besides, they also offer multi-cap and flexi cap funds which invests in large, mid- and small-cap companies.  

Fund houses also offer schemes where they invest in specific sectors such as banks and technology, or it could be thematic where they invest the funds in multiple sectors allied to the themes. For example, if the theme is infrastructure, the fund house can invest in infrastructure companies but also in banking, construction, logistics, and cements. 

Equity-linked savings schemes offered by mutual funds, provide tax deduction benefits under section 80C of the Income Tax Act. However, you need to stay invested in these schemes for at least three years.

Debt-oriented schemes

For slightly conservative investors, mutual fund houses offer debt-oriented schemes. The risk involved in debt market is lower than that of equity markets and the expected returns are lower than what one can expect in an equity market. Depending on the type of securities in the portfolio, the duration of the instruments, and credit risk, debt funds can be categorised.  

Some of the debt market instruments include corporate bonds, commercial papers, government securities, or specific sectors such as banking and PSU funds where they invest in debt papers of banks, public sector undertaking, public financial institutions, and municipal bonds.

In hybrid schemes, the mutual fund house will invest the corpus collected from the investors in both debt and equity markets.

Other funds

Fund of funds is a scheme through which a mutual fund invests in other mutual funds' schemes rather than investing in stock market or debt market by itself. This is done for diversification purposes and the mutual fund analyses funds, their performance and strategy, selecting the ones that fit closely to its investment objective.
 
Exchange traded funds is an investment fund holding multiple underlying assets and is listed on stock exchanges. Just as how one would buy or sell shares on the stock market, you can similarly trade these funds. The return and risk on ETFs are linked to the underlying index or asset.
 
However, it is important to remember that mutual fund investments also involve some risk and you need to analyse your financial objectives, your risk capacity and a fund's performance, a fund manager's track record, transactional costs involved. Ensure that your investment objectives align with a fund's investment objective. 

Equities

When people invest in equities, they are essentially buying shares of a company. This can be either through the primary market, which is the initial public offering (IPO), or through the secondary market, where people buy existing shares of a listed company that are already in circulation. 

So why do people invest in the stock market? Buying shares of a company makes you a part owner of the company. You can earn returns in the form of dividends or sell the shares at a higher price than what you purchased initially, thus booking a profit on these stocks. 

However, investing in the stock market is considered to be risky as the prices are volatile, which means they are prone to change rapidly. Hence, people can either earn higher returns if the stock gains value or could incur losses if the share prices fall. 

Debt market

Debt market instruments refer to fixed-income instruments such as bank fixed deposits, government securities, and corporate bonds. These are essentially contractual obligations where you lend money and earn interest on it at the end of the contract or the maturity date. 

The risk involved is lower than equity market but in some cases such as corporate bonds there is an inherent default risk involved. As the risk is generally low, the interest rate is also generally low, while higher-risk instruments may offer higher potential returns.

Real Estate

People acquire land or property by investing in real estate. When the property or land value appreciates, you may sell it to earn a profit. However, people primarily invest in real estate to acquire an asset, in this case, a house, which is used for consumption purpose (staying). However, in case of a financial crisis, you could mortgage or sell this property to raise funds. But these investments are illiquid, meaning that you cannot immediately convert them into cash.

Commodities

People purchase commodities such as gold and silver, which can be used for both personal consumption, such as wearing jewellery , or for investment purposes. In case of an emergency in the future, you may sell these commodities to garner funds. 

You can invest money directly in these asset classes or through pooled investment vehicles. With these investment vehicles, the money collected from several investors is invested in one or more of these broad asset classes. You indirectly invest in the asset categories through investment vehicles, which are professionally managed. So, what are some of the investment vehicles?

Mutual funds

Mutual funds are one of the most popular investment vehicles through which several investors subscribe to a fund house’s scheme, and the corpus collected is invested in one or more of the broad asset classes based on the investment objective.

However, as the money is invested in the asset class with an inherent risk, such as in case of equity, the value of the investment may rise or fall depending on the underlying value of stock. Generally, mutual fund managers diversify the investment portfolio to reduce the impact of such occurrences.

REITs and InvIts

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are another type of investment vehicle. They issue units in a public offer or through private placement to raise funds for a scheme. REITs are mandated to invest at least 80 per cent of the asset in completed and income generating properties. In India, REITS are only allowed to invest in the commercial real estate sector. 

InvITs, too, are mandated to invest 80 per cent of the assets in completed and revenue-generating infrastructure projects in roads, highways, power plants, among others. 

REITs and InvIts are required to distribute 90 per cent of their net distributable cash flow or the actual cash available to the unitholders in the form of dividend.

There is risk involved in this type of investment scheme as well, which is linked to the underlying asset, market movement, and regulatory factors such as the Reserve Bank of India’s monetary policy, which may impact the unit prices.

National Pension Scheme

The National Pension Scheme is a government-sponsored pension scheme where employees can voluntarily invest a portion of their income, which is aimed to provide a stable income post retirement.

Many employees invest in this scheme, and professional fund managers invest this amount in diversified asset classes. Upon retirement, at least 40 per cent of the accumulated profit needs to be utilised for purchasing an annuity to provide regular pension income. 
 
It is important to understand your financial needs, the amount you can invest, the risk appetite, and the risks involved with the type of investment before embarking on your investment journey.

An investment is when you acquire assets and expect them to create wealth or higher income over a certain period of time. Some of the common asset classes are equities, debt market, real estate, and commodities.

Savings and investment 

People often use savings and investments interchangeably, but, there is a difference between the two. Savings largely refer to short-term emergencies, whereas investments are for realising long-term financial expenses or contingencies requiring a large amount of money. Savings generally entail less risk compared to an investment and hence, the return is lower.

Take for example the money in your savings bank account. It is generally considered to be safe and you earn a small interest on it, but it would be significantly lower than what you would gain by investing in other asset classes. Your bank may offer you an interest rate of 2.5 per cent on your savings bank account, however, this would be lower than the interest rate of 6.25 per cent offered on a fixed deposit with the same bank for one year.

Interestingly, an investment is done generally through the amount you save. Savings are essentially the remainder of your total income minus your total expenses. So, whatever is left after you pay your bills and meet your daily necessities is savings, and from these savings, you can allocate a portion for investment. So, the lower the expenses, the higher the savings and the higher portion can be allocated for investment. 

Investments help you generate passive income. Active income refers to your salary income, where you work to earn the income. In passive income, you invest to earn the income without having to work for it directly.

As investments generally have some degree of underlying risks, it is important to understand your risk-taking appetite and to diversify the investments to realise the financial goal. 

Why to invest?

The primary reason that people invest is to multiply their money. But why is it necessary? To meet your future financial expenses or goals. These financial expenses could range from buying a house (which is also an investment class), marriage expenses, your children’s education loans, your vacations, your retirement, or any medical emergencies or financial setbacks such as job loss. Investments generally are for long-term purposes, and this helps you to compound your returns.  

In compounded growth, you earn interest on the sum invested and its growth. For example, an investment of Rs 100 that earns 10 per cent interest, then in the first year, the interest would be Rs 10, but in the next, it would be Rs 11 as the amount becomes Rs 110 (Rs 100 investment and Rs 10 interest) instead of Rs 100. Similarly, this amount keeps getting compounded till the investment continues.

Additionally, you need to invest because of inflation. Inflation reduces the purchasing power of money over time. So, the value of your money now would be lower in the future. Take, for example, the price of milk. Milk prices for one litre have increased from Rs 48 to Rs 62 in recent years. So, to buy a litre of milk you have to pay more now than what you did five years ago.

Thus, even if one does not plan to have a retirement fund or have financial expenses that require a large amount of money, inflation makes it necessary to invest as the value of money reduces gradually.  

The convenience choice

Explaining why online food delivery platforms have become an integral part of consumers' lives, Harish Bijoor, Brand Guru and Founder of Harish Bijoor Consults Inc., told mid-day.com, "Consumers are weighing convenience over cost. So, all of a sudden people are tending to say the value of time is more than the value of money in my pocket. And these are two currencies in a consumer's pocket - time on one hand and money on the other. While money can be replaced by working yet another day, time cannot be replaced. And therefore time-sensitive customers are actually gravitating towards online food delivery platforms, which offer them great convenience."

Consumers such as Professor Dr Kanchan Akshay, who orders at least once a week, and 21-year-old Manomay Upadhye, who relies on these apps during long college hours, echo the same sentiment.

A recent report by Redseer Strategy Consultants notes that the preference for convenience and outside meals has driven the growth in the online food delivery sector. The share of online food delivery is around 11 per cent of the USD 90 billion food services market in India (as on March 31, 2026) which is projected to increase to 18 per cent of the estimated USD 150 billion food services industry (by March 31, 2031).

Online food delivery platform majors such as Swiggy reported a Gross Order Value of Rs 9,005 crore during the fourth quarter of the financial year 2025-2026, while Zomato's Net Order Value stood at Rs 9,757 crore during the same period.

Bijoor further adds, "Right upfront food delivery apps are actually selling convenience but at the backend there are certainly algorithms, which are trying to convert these occasional buys into more frequent buys, making them out to be a habit."

The 'wrong' SIP

It is these frequent purchases that are quietly chipping away the savings that could have been utilised to create an investment corpus required for future needs, say financial advisors.

Suresh Sadagopan, Managing Director and Principal at Ladder 7 Wealth Planners , says this discretionary spend is on an upward trajectory, as people are spending a fair amount of money on these online food delivery platforms, with many cases of people spending Rs 15,000 to Rs 20,000 per month.

As PLNR Investment Advisors Founder Ajay Pruthi says, "Ask anyone to guess their monthly spend, then check the statement. They are off by 50 to 100 per cent. One client guessed Rs 4,000, actual was Rs 11,300. Rs 380 on a Tuesday does not feel like spending, it feels like dinner."

Observing the frequent buying trend, another veteran financial advisor joked that while his daughter started SIPs (Systematic Investment Plans) in mutual funds as an engineering student, her investments have not grown after she started working because she now has several "daily SIPs" on food delivery platforms.

Pruthi concurs, "That is the real damage", as the SIP in investment stays frozen.

A case in point is a Reddit user who recently noted that he had spent Rs 42,974 on Swiggy over the past year across 97 orders.

"That's about Rs 3,581 every month. The funny thing is I never felt like I was spending that much. Every order seemed small, but seeing the annual total was eye-opening," the user Heavy_Anteater_1020 said on the social media platform.

Why does this happen?

With most transactions on online food delivery platforms being made digitally, consumers often lose track of how much they are spending. The convenience of digital payments removes the tangible aspect of payment thus leading to higher spending.

"Digital expenses are really very high when it comes to food delivery platforms but nobody sees through it. There is a certain opacity which is thrown up and people tend to say that this is the price I have paid for convenience. So that invisibility is actually made even more invisible," Bijoor says.

Acknowledging this, Neha Ravishankar, a recent data science graduate says, "Without realising, I have spent a lot. We lose track of the number of times we are ordering and for how much. We feel like ordering, so we just order."

As per National Payments Corporation of India (NPCI) that collates the data for UPI, fast food restaurants, and eating places and restaurants are among the highest transacting categories. Fast food restaurants recorded 1,449 million monthly transactions amounting to Rs 17,418 crore in June, while eating places and restaurants registered 1,242 million transactions worth around Rs 21,485 crore. However, NPCI does not provide specific data pertaining to online food delivery segment, so its share in the UPI transactions remain unknown.

Pruthi, a SEBI registered investment advisor, says the frequent online food delivery is one of the biggest budget leaks that remains largely undetected.
"Clients worry about 0.5 per cent fund expense ratio, yet Rs 9,000 a month quietly disappears through an app unnoticed. A financial leak is money that leaves without a conscious decision, and nobody decides this spend, it just happens order by order," he says.

How to control your online food delivery spending

Decide if it's a need or a want: Evaluate whether ordering food is a necessity or a discretionary expense based on your lifestyle and circumstances.

Prioritise savings: On salary day, invest first (such as through an SIP), set aside a fixed food budget, and spend the rest. "Save first, order later."

Follow a budget: Allocate a specific amount each month for food delivery and stick to it.
Spend according to your income: Keep food delivery expenses proportionate to your disposable income. A Rs 10,000 monthly bill may be manageable for some but excessive for others.

Reduce spending gradually: If possible, cut your current food delivery spending by at least one-third.

Watch the 10 per cent rule: If food delivery expenses exceed 10 per cent of your monthly income or budget, reassess your spending habits.

Track your expenses: Review your bank statements regularly to understand how much you are spending on food delivery apps.

Use cash or a separate account: Opt for cash on delivery (COD) or load a fixed amount into a dedicated account for food orders to create a spending limit.

Add friction to spending: If the allocated food budget is exhausted, avoid placing more orders and cook at home instead.

Review your budget regularly: Ensure essential expenses and savings are covered before allocating money for discretionary spending.

Key takeaway: Financial experts agree that budgeting, limiting food delivery orders, tracking digital spending, and using cash or capped accounts can help prevent overspending and improve long-term savings.

This feature article contains statements, opinions, and quotes provided by third parties. Such content has been attributed to the respective speakers and is published for journalistic and informational purposes. Mid-Day does not endorse or assume responsibility for the views expressed by quoted individuals and disclaims liability for any inaccuracies in third-party statements.

According to IANS, Nifty added 0.18 per cent during the week and edged up 0.14 per cent on the last trading day to reach 24,056. At close, the Sensex was up 109 points, or 0.14 per cent, at 77,100. It added 0.39 per cent during the week.

Weekly sectoral indices

On the sectoral front, pharma and healthcare stocks outperformed, while private banks advanced following the RBI's clarity on the FCNR(B) deposit swap scheme.

Metals were major losers due to falling commodity prices, while consumer durables lagged amid demand concerns.

Broad market indices showed divergence with benchmark indices, as Nifty Midcap100 lost 1.15 per cent, while Nifty Smallcap100 edged up just 0.03 per cent during the week. Immediate resistance levels for Nifty are placed at 24,400 and 24,500, and support is seen at 23,900 and 23,800. 

Easing geopolitical tensions and declining crude oil prices

The domestic markets navigated a week of mixed signals with notable resilience, even as broader indices, especially mid-caps, faced modest selling pressure.

Easing geopolitical risks amid progressing US-Iran talks and optimism around an India-US trade deal helped fuel domestic investor sentiment.

However, expectations of rising inflationary pressure and a potential dampening in rural demand began to surface, driven by concerns over uneven monsoon distribution, an analyst said.

Expert opinion

Sustained softness in crude prices remains a clear macro positive in the near term, along with improving inflation, fiscal, and current account dynamics, collectively providing the RBI with greater policy flexibility.

As corporate earnings reports are expected in the coming weeks, management commentary on demand visibility, margins, and order flows will serve as key indicators for market direction.

A market expert said, "A prudent yet optimistic stance is warranted, with a focus on selectively building positions in fundamentally strong companies that have seen recent corrections without any meaningful deterioration in their underlying outlook," as per IANS. 

Investors remain keen on US PCE data that will shape the globe, along with non-farm payrolls and unemployment figures, which will influence Fed rate expectations and overall risk appetite.

Domestically, industrial production data and June PMI readings will provide early signals ahead of Q1 earnings season, according to analysts.

(With inputs from IANS)

The proposed law replaces the term 'previous year' as mentioned in the Income Tax Act, 1961 with 'tax year'. Also, the concept of assessment year has been done away with.

Currently, for income earned in the previous year (say 2023-24), tax is paid in assessment year (say 2024-25). This previous year and assessment year concept has been removed and only tax year under the simplified bill has been brought in.

The Income Tax Bill, 2025 comprises 536 sections, higher than 298 sections of the current Income-Tax Act, 1961. The existing law has 14 schedules which will increase to 16 in the new legislation.

However, the number of chapters have been retained at 23. The number of pages has been reduced substantially to 622, almost half of the current voluminous Act which includes amendments made over the last six decades.

When the Income Tax Act, 1961, was brought in, it had 880 pages.

"This increase in sections reflects a more structured approach to tax administration, incorporating modern compliance mechanisms, digital governance, and streamlined provisions for businesses and individuals. The new law introduces 16 schedules and 23 chapters," AMRG & Associates Senior Partner Rajat Mohan said.

As per the proposed law, clearer tax treatment on stock options (ESOPs) have been included for reduced tax disputes and includes judicial pronouncements of the last 60 years for more clarity.

"A key departure from the Income-Tax Act, 1961, is that previously, the Income Tax Department had to approach Parliament for various procedural matters, tax schemes, and compliance frameworks. Now, CBDT has been empowered to introduce such schemes independently, significantly reducing bureaucratic delays and making tax governance more dynamic," he said.

As per new law, the CBDT can now frame tax administration rules, introduce compliance measures, and enforce digital tax monitoring systems without requiring frequent legislative amendments as per the Clause 533.

After introduction, the bill is likely to be sent to a parliamentary standing committee for scrutiny.

Finance Minister Nirmala Sitharaman had announced in Budget 2025-26 that the new tax bill will be introduced during the ongoing session of Parliament.

Sitharaman had first announced a comprehensive review of the Income-tax Act, 1961 in July 2024 Budget.

The CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigations, and provide greater tax certainty to taxpayers. Also, 22 specialised sub-committees have been established to review the various aspects of the Income Tax Act.

Public inputs and suggestions were invited in four categories: simplification of language, litigation reduction, compliance reduction, and redundant/obsolete provisions.

The income tax department has received 6,500 suggestions from stakeholders on review of the Income Tax Act.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

Additionally, the total number of ITRs for AY 2024-25 filed till July 31 is 7.5 per cent more than the total ITRs filed in the previous AY. For AY 2023-24, 6.77 crore ITRs were filed which went up to 7.28 crore in AY 2024-25.

The taxpayers and tax professionals made their compliances in time, leading to a surge in filing of Income-tax Returns (ITRs), which resulted in a new record of ITRs filed till the last date," said the Ministry of Finance in an official statement.

As per the official statement, July 31 saw the highest numbers of ITRs filed in a single day with 69.92 lakh ITRs being filed. The e-filing portal also observed its highest per hour rate of 5.07 lakh of ITR filing between 7pm and 8pm on July 31.

58.57 lakh ITRS were filed by first time filers, said the statement adding that it was a fair indication of widening of tax base. 

In a historic first, ITRs (ITR-1, ITR-2, ITR-4, ITR-6) were deployed on the e-filing portal on the first day of the Financial Year i.e. April 1.  The ITR-3 and ITR-5 were also released earlier in comparison with the preceding financial years.

Out of the 7.28 crore ITRs filed for A.Y. 2024-25, 45.77% of ITRs are ITR-1 (3.34 crore), 14.93% are ITR-2 (1.09 crore), 12.50% are ITR-3 (91.10 lakh), 25.77% are ITR-4 (1.88 crore) and 1.03% are ITR-5 to ITR-7 (7.48 lakh).  Over 43.82% of these ITRs have been filed using the online ITR utility available on the e-filing portal and the balance have been filed using offline ITR utilities.