Home Discover Journals If not a car, then what? Here's how the sharing economy is affecting spending patterns

If not a car, then what? Here's how the sharing economy is affecting spending patterns

By Finserv MARKETS - Oct 15,2019
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If not a car, then what? Here's how the sharing economy is affecting spending patterns

In India, buying a home and car have long been considered status symbols, for the purchase of which people save up for years on end and pay EMIs on a fairly regular basis. However with the advent of the sharing economy, things are now changing with the purchase of such assets declining. The sharing economy refers to the concept that highlights the ability, along with the preference of individuals to borrow or rent goods rather than to buy or own them. The sharing economy is being made possible as more and more people participate in sharing their resources and assets, such as their homes and vehicles. For instance, companies such as Ola, Uber and AirBNB are all achieving success owing to people’s increasing preference for sharing over owning.

The sharing economy is also indicative of the recent popularity being enjoyed by mutual funds. This investment instrument relies on several investors pooling in their funds and investing in a fund that is handled by a fund manager who takes decisions on how best to invest the money. Mutual funds can primarily invest in equity or debt, but the best mutual funds have a balanced mix of both. This ensures the best returns, while also guaranteeing security of your funds. You can open up a free account fast by investing in mutual funds on Finserv MARKETS, where you get access to detailed insights on your portfolio.

You can choose the amount of advice and guidance you will require from a broker by opting for either a Direct Mutual Fund, which offers minimal guidance and thus charges a 0% commission fee; or you can opt for a Regular Mutual Fund where you constantly receive proactive guidance from a broker along with insights through your Customer Portal.

Top mutual funds are a great example of how the sharing economy is a model of success over a long period of time. However, with the advent of the sharing economy, people also now have more excess money than ever before. Read on below to learn what you can do with the extra finances just lying around.

  • Pay your High Interest Debt:

Many young professionals still have student loans they are yet to pay off. When you have extra cash lying around, it is best to pay off these debts because it allows you to live the rest of your life without being concerned about a loan. It also significantly improves your credit rating to pay off a loan earlier, thereby making it that much easier for you to avail loans in the future.

  • Start a Side Business:

A business on the side of your regular job is a great way to bring in extra income. However, setting up a business also requires capital which can be accessed with the extra resources you have lying around. Invest in a small business and scale it until it becomes profitable. The business does not need to be glamorous or even very big at the beginning, you can simply focus on selling your home-made wares too, if you like.

  • Invest in Mutual Funds:

Mutual funds are a great investment tool, since they help balance out security of your returns while also guaranteeing returns over a long period of time. Investing carefully allows you to begin preparing for your future well in advance, and it is best to start upon this as early as possible. Mutual funds can focus entirely on equities, debts or be a mix of both. If you invest in top mutual funds on Finserv MARKETS, you can invest in Hybrid Funds which allow a healthy balance of both equity and fund securities. The percentage of allocation in the best mutual funds depends essentially upon the risk appetite of the investors who are jointly pooling in their resources.

  • Build an ‘Experience’ Fund:

Life is made up of experiences, rather than all the things we purchase. Whether a vacation or a staycation, experiences can be created at any time. However, there is a certain amount of funding that goes into turning these experiences into reality. With your excess funds, you can start building up a corpus that can be enjoyed by you at a later date and give you memories for a lifetime.

A sharing economy is helping people free up their resources from static assets and investing in more meaningful and ultimately, more valuable things. While the money can be stored towards building up a corpus for enjoying experiences, it can also be invested towards building up a bigger corpus that can be used to achieve future goals. The best mutual funds are a great example of how funds can be utilised to achieve higher returns over a period of time. When you invest in top mutual funds on Finserv MARKETS, you can not just save up for long-term goals but also enjoy tax benefits in the meanwhile. In five steps, you can set up your account on the portal and start trading instantaneously.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522