Mercedes India’s sales and marketing head has been in the news for naming SIP as their competitors
As per them, Indians are allocating the majority of their disposable income to SIPs instead of buying luxury cars.
Whether this debate is valid or not is another question, but the question we are answering today is, can you buy a Mercedes by just investing in SIPs? Let’s find out:
Let’s assume you want to buy a Mercedes-Benz A-Class Limousine, which has a current market price of ₹42 lakhs in India.
If you want to buy this in the next 8 years, then after factoring in the inflation ( of 8%) the cost of the car will be around ₹45,36,000
Assuming your SIP returns are 12%, you will need to invest ₹28,363 per month.
If you increase the duration from 8 to 10 years, then you will only need to invest ₹19,718 per month.