Across India, Gen Z (those born between 1997 and 2012), now aged 13 to 28 is rewriting the rules of personal finance. With over 377 million of them in the country, they’re not just entering the workforce; they’re reshaping it, pouring billions into investments that blend tradition, tech, and a dash of daring.
But here’s the million-rupee question: In the battle of gold, crypto, and SIPs (Systematic Investment Plans in mutual funds), which path is India’s Gen Z truly treading? Are they ditching grandma’s gold bangles for blockchain bets, or sticking to the steady drip of SIPs?
Fresh data that dives into trends, armed with stats from reports like CoinSwitch’s Q3 Crypto Portfolio and Morningstar’s investor surveys, reveals some shocking details. Let’s unpack Gen Z investment trends in India, which reflect a generation hungry for smart, sustainable wealth-building.
Digital gold & SGBs: Why Gen Z is ditching traditional jewellery
Gold has been India’s go-to safe haven for centuries. Think about all the weddings you might have attended and all the gold you saw there. It has also been a standard in family heirlooms passed down. But for Gen Z, the noble metal is not all about just buying more bangles or earrings! It is in fact about smart, bite-sized buys in a digital space. Affordability, liquidity, and the cultural pull towards stability amid global chaos are the leading reasons for this.
Recently in September 2025, India’s gold investment demand jumped to over $10 bn in bars and coins alone, which is the highest quarterly surge seen in years. But if you think it’s the physical gold that is attracting the young buyers, you are mistaken. As per a 1Finance report on Indian investment habits, only 34% of Gen Z prefers to buy traditional gold, compared to 52% of Millennials. In fact, 75% under 35 years of age prefer digital gold. Small grams bought via apps like PhonePe or Groww, with no locker fees or making charges eating into returns.
This big shift is data-driven, and not just hype. Gold ETFs alone claimed a record $902 million in September 2025 , beating equity inflows as returns hit 60% year-to-date, which is much higher than Nifty 50’s 25%. Sovereign Gold Bonds (SGBs) are also another Gen Z favourite, that offers 2.5% annual interest with tax-free capital gains. Gen Z is aware of and is highly interested in SGBs, as they find it low risk instrument that has government backing. No wonder searches for “digital gold investment India” are on the high. (Note: Fresh issue of SGBs is currently paused; but they are available for purchase in the secondary market).
26% of Gen Z ranks gold among top choices, blending cultural sentiment with modern ease. In volatile times like the big rupee dip of 2025 against the dollar, gold’s hedge appeal shined, pulling in 53% of Indians overall as a preferred asset, per Axis My India’s 2022 survey.
However, gold also has its critics like everything else. Gen Z calls it “boring” next to crypto’s returns, with only 22% prioritizing it over stocks. But it still finds 5-10% in a portfolio, offering diversification when markets crash.
Crypto in 2025: Inside India’s surge in bitcoin and altcoin ownership
If gold is the uncle giving away ashirwads at a wedding, crypto is that one rebel without a reason crashing the party with fireworks and drinks…and Gen Z is all in for it. Gen Z is well over the 2017 crypto fiasco. 2025 marks crypto’s maturity in India, with Gen Z leading the charge from the front. As per CoinSwitch’s Q3 2025 report, 18-25-year-olds now claim 37.6% of the investor base, beating Millennials at 37.3% for the first time.
You see, when it comes to crypto adoption, India’s performance is what we can call “World-beating”. Chainalysis’s 2025 Global Crypto Adoption Index ranks India as the number 1. And the inflow by the youth is what has driven this ranking. This inflow is projected to hit $15 billion by 2035, fuelled by Gen Z’s huge appetite for risk.
However, one must know that Gen Z has an edge here. Its digital nativity. Unlike Millennials, who are scarred by past crashes like the 2008 one, Gen Z dives headfirst into meme coins and NFTs, viewing volatility as a big opportunity. The buying is maturing from a thrilling chase to building trust, with young investors now using dollar-cost averaging, as per insights by Economic Times.
What pulls the Gen Z towards Crypto is probably the freedom from banks and its global access. But with SEBI’s watchful eye, Gen Z must be more careful in the coming time.
The power of SIPs: Using compounding to build sustainable wealth
And now comes in the slow cooked delicious meal of investments, SIP (Systematic Investment Plan)! The disciplined way of investing that bridges impulse and intentions for Gen Z. Something that has no glamour, but sustainable growth. Where rupee-cost averaging protects against volatility, turning a mere Rs 1,000 a month potentially into lakhs over decades. In 2025, they’re booming. Millennials and Gen Z cumulatively claim 48% of the Rs 75.35 lakh crore AUM pie according to ScanX, an Indian stock screening platform.
The numbers tell a very refreshing story. As per Morningstar, Indians under 35 opened 40% of new SIP accounts this year. 19% of Gen Z invests in SIPs (vs. 14% Millennials), favouring equity funds (84% pick them), for long term stable returns. Nearly half of mutual fund folios are under the age of 30, majority of whom start equity-heavy, with over 90% opting in at an average of Rs 2,500 per month.
But why is the risk hungry Gen Z so attracted to such SIPs? Well, they discovered the power of Compounding. A small Rs 5,000 monthly SIP at 12% over 10 years yields close to Rs 12 lacs. Being the smart generation, they would rather cut down on the costs at the international coffee houses and invest that into SIPs for that kind of money.
SIPs win on accessibility, as 93% Gen Z saves 20-30% income, prioritizing them for goals like homes or EMIs according to a survey by Business Today.
The Verdict: How to Split Your Money Between Gold, Crypto, and Stocks
So, which way is Gen Z going? The answer is, they aren’t sticking to just one. They are diversifying like their life depends on it. CoinSwitch data shows 58% go into stocks/MFs, 26% into gold, and then comes crypto’s 37.6% share. The Business Today survey pegs 45% favouring stocks/SIPs over gold’s stability. Yet, 72% of 18-21-year-olds chase equities, blending with 3-5% crypto and digital gold hedges.
Gen Z’s are not choosing, they’re curating. Gold for roots, crypto for wings, SIPs for the marathon. So, if you are a part of the Gen Z, consider starting small: 50% equities via SIP, 20% gold, 10% crypto, rest into a high interest savings account as emergency funds (Note: This is a generalised opinion and not a recommendation). Track via apps, learn from industry experts and not flaky finfluencers, and remember: Wealth’s a marathon, not a meme. As India eyes $5 trillion GDP by 2027, Gen Zs bets could fuel it.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, he was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks/securities/funds discussed in this article.
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