Finvestments Newsletter – September 2025

Finvestments Newsletter – September 2025

Month Ending – August 2025

GST Overhaul: Cheaper Essentials, Costlier Luxuries

India’s GST Council is set for its boldest reform since 2017. The plan is to simplify tax slabs, reduce compliance, and fuel consumption—a move that could directly impact households, businesses, and investors.

- Essentials like food, cement, insurance, and small cars may soon attract lower GST.
- This will ease everyday expenses while boosting housing, automobile, and insurance demand.
- Markets may respond positively, benefitting FMCG, auto, housing, and insurance sectors.
- Debt investors may gain from greater fiscal clarity and stability.

If executed well, this overhaul could be the second big GST milestone, boosting growth and investor confidence alike.

Investment Gyan – Why Your First 3 Years Matter Most

The first three years of investing decide how successful your next ten years will be—and it has very little to do with returns.

In April 2025, SIP inflows reached a record ₹26,632 crore, but the SIP stoppage ratio hit 296%.
- 46 lakh new SIP accounts were opened.
- 1.36 crore SIPs were discontinued.

This shows many investors start strong but fail to stay consistent. Inconsistency is the biggest enemy of wealth creation.

Key Habits to Build Early

✅ Continue SIPs even during market dips
✅ Think long term instead of chasing quick returns
✅ Stay patient with your investments

SIP Snapshot – April 2025

Month

SIP Inflows (₹ Cr)

New SIPs (Lakh)

SIPs Stopped (Lakh)

Stoppage Ratio

April 2025

26,632

46

136

296%


Client Success Story – From FD to Financial Freedom

At 53, Mr. Rammurthy was looking for stable monthly income after his PPF maturity. Instead of choosing an FD, he invested ₹40 lakh in a Systematic Withdrawal Plan (SWP) across Balanced Advantage, Multi-Asset, and Hybrid Funds.

- Over 8 years, his investments grew to nearly ₹65 lakh.
- He continues to receive ₹26,000 per month as regular income.

This shows how SWPs can balance cash flow and long-term growth, compared to traditional FDs.

Macro-Economic Indicators – August 2025

The latest macro indicators highlight steady momentum in India’s economy:

- GST Collections: Stable at ₹1.96 lakh crore, reflecting resilient tax compliance.
- Power Consumption: Rising to 4,956 MU, showing industrial and household demand growth.
- Auto Sales: Passenger vehicles at 3.41 lakh units, 2-wheelers at 15.67 lakh units.
- Mutual Fund SIP Contributions: Robust at ₹25,982 crore.
- Monthly MF Flows: Sharp rebound to ₹42,702 crore.
- UPI Transactions: At ₹25.08 lakh crore, highlighting continued digital adoption.
- E-Toll Collection: ₹6,669 crore, steady growth in transport activity.
- PMI Indexes:
   • Manufacturing PMI: 59.1 – strong expansion.
   • Services PMI: 60.5 – healthy services growth.


Disclaimer

The information provided in this newsletter is for educational and informational purposes only. It should not be considered as financial or investment advice. Mutual fund investments are subject to market risks, and past performance is not indicative of future results. Investors are advised to consult with a certified financial advisor before making any investment decisions. The data and figures presented are based on sources believed to be reliable as of 31st August 2025, but accuracy or completeness cannot be guaranteed. Finvestments shall not be held responsible for any decisions taken based on this newsletter.

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