The sharp fall in the Indian stock market has many experts worried, but 24-year old first-time investor, Naveen Krishna, is sitting tight. In less than two years, Krishna has seen both sides of the market cycle. When he started investing in 2024, the indices were scaling new highs regularly. Now, he is experiencing a bloodbath at the bourses and his portfolio is already down 5%.
“My friends suggested that I should look at options like fixed deposits or some other asset class. But I have decided to stay patient and invest consistently,” said Krishna, adding that his portfolio is currently down 5%.
Naveen Krishna (24, Kerala)
Works at Larsen & Toubro, Mumbai
Investing in MFs since 2024
Monthly SIP – ₹8,000-₹10,000
Average returns (-5%)
Odisha-based Shreya Mathew also prefers to look at the long-term picture. “One year of fluctuation should not deter you from investments as it is momentary,” she said. Mathew, who started buying MF units back in 2021 after her first job, stood invested even when she took some time off for her postgraduate diploma.
Shreya Mathew (25, Odisha)
Works at MX Advertising, Mumbai
Investing in MFs since 2021
Per month SIP – Rs. 7,000
Average return – 15%
Such conviction in the long-term wealth creation through equities has benefitted mutual funds immensely who have seen steady inflows through systematic investment plans. Even though there was a slowdown in the SIP collection in February – down to Rs 29,845 crore from Rs 31,002 crore in January – the number of accounts rose to 104.5 million with over Rs 16 lakh crore in assets.
And the Gen Z – ones born between 1997 and 2012 – is driving this. As of early 2026, around one-fifth of MF investors are Gen Zs, as per data from Computer Age Management Services. In 2020, they accounted for less than one-tenth of the total MF investors demography. Young investors are increasingly betting on the MF industry’s slogan, “Mutual Funds Sahi Hai”.
FE spoke to several other young investors who did not wish to be named. And most have decided to stay investors with an aim to create source of income in the future. “I’ve realised that there is no point in crying when markets crash and popping champagne when it rises; I want to keep on investing because markets will rise ultimately,” said a 26-year old teaching professional.
The good news also is that most believe in the long-term gain instead of trying to make a quick buck. There is also a growing realisation that the stock markets will be volatile in phases, and there is no point in trying to time it – a point that mutual fund managers have been harping about for over three decades now.
Like an IT employee with two years’ experience said “I’ll be (financially) dead in the near term if I don’t have enough investments.” He laments the imposition of capital gains tax but has learnt to live with it.
What is also driving this intention to create long-term wealth is worries about inflation. Many youngster lamented that while inflation figures might be in the low single digit, but living expenses have gone over the roof – be it rental, healthcare, insurance, or even a cup of tea. So, salaries aren’t enough.
Also, someone like Mathew has seen the advantages of long term wealth creation. Though she did not step up her monthly systematic investment plan (SIP) amount during her time off from the job market, she continued with it after rejoining after her studies. With average annual returns of around 15% despite the recent carnage, she has already learnt the benefits of long-term investing.