Subscriptions to OTT platforms and mobile apps have become a modern convenience, but they can also quietly eat away at your monthly budget. With a plethora of services like Netflix, Prime Video, hoichoi, and others competing for your attention, the total cost can easily exceed ₹1,000 a month, often without you even realizing it.
In India, the OTT industry has skyrocketed from about USD 1.5 billion in 2021 to an expected USD 5 billion by 2024, fueled by better internet access, affordable data, and the rise of smartphones. Many platforms are now using a hybrid model that combines subscriptions with advertising to keep the revenue flowing. However, the fragmentation of services and the prevalence of trial periods make it tricky to cancel subscriptions, leading to overspending.
On top of that, some sneaky user experience tactics, often referred to as “dark patterns,” are employed to make cancellations a hassle and upselling a common occurrence, which only adds to the lack of transparency and trust.
So, what if you could take that ₹500–₹1,000 monthly subscription fee and redirect it towards investing instead?
The Power of SIP Investing in India
A consistent monthly Systematic Investment Plan (SIP) can transform small, regular contributions into significant long-term wealth. Here are some real-life examples:
- Franklin India Money Market Fund: Investing ₹10,000 a month via SIP grew to ₹70 lakh over 23 years (CAGR 7.1%).
- UTI Mid Cap Fund: A monthly investment of ₹10,000 turned into ₹1.62 crore over 20 years, boasting an impressive XIRR of 16.73%.
- Aditya Birla Sun Life Balanced Advantage Fund: ₹10,000 a month grew to over ₹1.6 crore in 25 years (CAGR 11.7%).
Even a modest amount, say ₹1,000 a month, invested consistently in these high-performing SIPs can compound significantly over the years.
When Is the Best Time to Invest?
A lot of investors get anxious about picking the "best SIP date"—should it be the 15th or the 25th? But the truth is, research shows that the specific date you choose in the month doesn’t really impact your long-term returns.
- A decade-long analysis reveals that the returns on Nifty-linked SIPs only fluctuate a bit, ranging from 12.07% to 12.19%, no matter when you start.
- Tata Capital points out that there’s no ideal SIP date; what really counts is being consistent and syncing it with your salary schedule.
So, pick a date that works for you, fits your cash flow, and most importantly, stick to it.
Wrap-Up: Turn Subscriptions Into Savings
Let’s summarize:
- Subscription fatigue is real thing—those multiple OTT and app fees can pile up quickly, often without us even noticing.
- If you shift that ₹500–₹1,000 into investing, it can really boost your wealth over time.
- SIPs reward consistency, rather than perfect timing. Even a small, disciplined monthly investment can grow significantly through compounding.
- Act now cancel those unnecessary subscriptions and redirect that money toward your long-term financial goals.