Why Gen Z is Choosing Mutual Funds Over Savings

Invest at 22 or Travel the World?

The oldest debate in personal finance — live now vs. build later — finally has a real answer. And it's better than you think.

Every generation in their 20s faces the same situation. You've just started earning. The world looks wide open — weekend trips, new gadgets, good food, great memories etc. But somewhere in the back of your mind, that word keeps showing up — Invest.

So, which one do you do first?

Here's what nobody tells you: you're asking the wrong question.

Should young people start investing or enjoy life first?

Both. But the order matters more than you think.

The good news is that investing and enjoying your 20s aren't opposites — they're actually designed to coexist. A ₹1,000 SIP started today won't stop you from booking that Goa trip. But not starting it today will cost you something that money alone can't buy back later — Time.

Think of it like a plant. The best time to water it was 10 years ago. The second best time is right now — even if it's just a small pot with ₹500 a month.

What's the biggest advantage of starting early?

Your age is your unfair advantage — and it expires.

Here's the math that changes everything. Two friends, Riya and Amit — both want ₹1.71 crore by age 60.

*Assumed 12% p.a. CAGR. Past performance does not guarantee future returns, and all comparison figures mentioned are purely illustrative.

Same goal. Same mutual fund. Same return. But Riya gets there by investing less than a third of what Amit has to. The only difference? She started 10 years earlier.

This is because Riya's monthly SIP started at 22, whereas Amit's monthly SIP started at 32. Here Amit needs 3.2x more to reach the same goal amount.

This is the result of compounding. It's slow and invisible for the first few years, then completely unstoppable. The calculation is simple.

The real takeaway: You don't need a big salary to build serious wealth. You need a small SIP and the patience to leave it alone. Starting early is the only shortcut that actually works.

What's the best way for Gen Z to begin?

Simple, small, and automatic — the Gen Z playbook.

You don't need a financial advisor, a Demat account, or even a firm handle on market cycles to get started. Mutual Funds — specifically SIPs (Systematic Investment Plans) — were practically designed for someone exactly in your position. If you are new to mutual funds, go through this blog.

Here's a No-fuss Starter Checklist

• Complete your KYC online — takes under 10 minutes with your Aadhaar and PAN card.
• Pick a simple index fund or large-cap fund for your first SIP. No need to overthink it.
• Start with whatever you can — even ₹500 or ₹1000 a month. The habit matters more than the amount right now.
• Set it to auto-debit so it runs without you thinking about it. Out of sight, into your future.
• Increase your SIP by 10–15% every time you get a salary hike. This one habit alone can double your corpus over time.

Conclusion

"The best time to plant a tree was 20 years ago. The second-best time is today."

Your 30-year-old self is watching what you do this month. Make them proud. Start small, start now — and keep living your best 20s while you're at it. Consider monthly SIP as your "EMI" which you are investing for your future self.

Ready to start your SIP? Click on the link inbestnow.com to check the best investment plan aligned with your goal.

Disclaimer - Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. SIP estimates and all comparison figures mentioned are purely illustrative. Past performance is not indicative of future results. Baid Inbest LLP is an AMFI-registered Mutual Fund Distributor (ARN: 86114). This content is for educational purposes only and does not constitute personalised investment advice. Please consult a SEBI-registered investment advisor before making investment decisions.