It’s 11 PM on a Tuesday. My cousin, a 25-year-old Marketing manager from Navi Mumbai unlocks his phone. On one app, his mutual fund SIP, which he has been building up for over 3 years is up a respectable 10%. At the same time, on another app, a cryptocurrency he has never even heard of is up 400%… just today. His friend’s Instagram story is a screenshot of his 5x gains on a “penny stock” he was recommended by a “Finfluencer”.
And that right there is the perfect introduction to the high anxiety afflicted, conflict defining India’s new generation of investors. Constantly at war with themselves when it comes to finances. A psychological war waged daily on their smartphones between the proven, patient power of Stability versus the electric, adrenaline-fueled thrill of FOMO (Fear of Missing Out).
For decades, the Indian financial dream was simple… You get a job, start saving in FDs and PPF, then buy a house, pay your EMIs and finally retire. But for the ~400 million Indians in the 20-30 age bracket, that dream feels slow, outdated, and pointless in the face of inflation. In short, it feels insufficient.
They are the first generation to be digitally native in their financial lives, and they are facing a numbing choice: Whether to follow the “boomer” advice of their parents or chase the “degen” riches of their contemporaries. Unfortunately, the data shows they are, confusingly, doing both. And the side of FOMO is becoming heavier at a scary pace.
The Siren Call of 100x: Inside India’s Crypto-Fuelled FOMO
Let us be honest to ourselves. The “quick gain” economy is no longer a fringe movement. It is a mainstream phenomenon. The primary driver being an effective cocktail of accessibility, social proof, and wild volatility.
Here is some hard data to ponder upon, from a recent October 2025 report by the crypto exchange CoinSwitch. For the first time, Gen Z (investors aged 18-25) has officially beaten the Millennials to become the single largest crypto-investing demographic in India, making up a staggering 38% of all investors.
If you think this is just casual interest, think again. This is a full-blown generational takeover if you will.
And just last week, the Madras High Court in a landmark ruling on October 27, 2025, declared that cryptocurrency qualifies as “property” under Indian law. This judgment gives a massive wave of legal and psychological validity to an asset class that was, until recently, dismissed as a fad.
But what are they buying? The CoinSwitch report reveals the psychology.
While Bitcoin holds the position of top holding, the next in line is the 2nd most popular coin for this demographic – Dogecoin! Mind you, this is a currency that started off as a literal joke. Yes, as a joke. Next up is Ethereum that sees high trading activity, but the real buzz is in volatile “altcoins” and penny stocks, where 10x gains (and 99% losses) are a daily possibility.
But why is the Gen Z investing in these risky bets then? Probably because a 12% annual gain on a NIFTY 50 index fund, however smart it may look, doesn’t make for a good Instagram story. But a 500% gain on a meme coin definitely does.
This is investing as entertainment, as social status, which is driven by what a 2024 academic study from IJSAT. The report identified in Gen Z investors a powerful “herd mentality” and a clear preference for “short-term gains”. They are not just investing they are gambling with a better user interface.
The Unsexy, Unstoppable Rise of the SIP
But here is the paradox. While one half of their brain is on a crypto exchange, the other half is deeply anxious about the future.
This same generation is not, as many believe, financially reckless. A 2024 Fin One survey revealed that 93% of young Indians identify as “consistent savers.” Furthermore, a global EY survey confirmed that “financial independence” is a near-universal goal for 87% of this demographic.
They are worried. The rising cost of living is their top concern, according to GWI reports. They are very much aware that a 5% return on a Fixed Deposit is a net loss against real-world inflation.
And so, they are also pouring money into the most “boring” and stable investment vehicle available to mankind, the Systematic Investment Plan (SIP).
Data from the Association of Mutual Funds in India (AMFI) shows an unrelenting, record-breaking trend. SIP inflows have been consistently growing, with millions of new accounts being added. High-volume Google searches in India aren’t just for “best crypto”; they are for for practical tools like “SIP calculator,” “NPS scheme,” and “how to save tax.”
This is the “Stability” side of the conflict. This is the part of them that is planning for a wedding, a down payment on a home, and a retirement their parents could be proud of. This is the “get rich slow” engine they know they need.
Analysis Paralysis: Trapped Between a Tweet and a Term Deposit
The result of these two powerful, opposing forces is not a balanced portfolio. It’s more of a financial whiplash.
The young investor is caught between two worlds, and it’s creating a state of “analysis paralysis.” And the real danger isn’t in choosing one or the other; it’s in the destructive behaviour this conflict creates. It leads to “panic selling” stable SIPs to fund a crypto gamble. It leads to “revenge trading” after a big loss. And the losses are real.
A SEBI study was brutally blunt when it pointed out that 9 out of 10 individual traders in the equity futures and options segment lose money. The “quick gain” is almost always a “quick loss.” The danger is that this generation, run by the volatility of FOMO, will wrongly conclude that “investing” itself is a scam and pull out of their stable SIPs, securing a future of financial anxiety.
The ‘Barbell’ Solution: How to Win the War (Not Just the Battle)
So, what is the solution? It is not to lecture Gen Z to stop buying crypto. Trust me, they won’t stop. And why should they. Crypto is not all bad. It is just that like any other asset class, you must understand it before investing in it. You see, the data is clear… They are already the #1 demographic doing it.
The solution is to reframe the entire strategy. Instead of “FOMO vs. Stability,” the answer is “FOMO and Stability.”
This is known as the “Barbell Strategy,” a concept popularized by author Nassim Taleb. It’s an investment portfolio designed to manage precisely this kind of volatility. It has two ends, like a barbell, and nothing in the middle.
1. The “Stability” End (90%+ of your portfolio)
This is your non-negotiable, “get rich slow” core which could act as your wealth engine in the long run. Something the kids will thank you for later.
Broad-market index funds (e.g., NIFTY 50, NIFTY Next 50), Mutual Fund SIPs, Public Provident Fund (PPF), and the National Pension System (NPS).
The Goal here is to capture the market’s long-term, compounded growth. This is the money for your retirement, your home, and your financial freedom. You never touch this for speculative bets. It is sacred. Just invest, sit back and let compounding work its magic.
2. The “FOMO” End (Less than 10%of your portfolio)
This is your “moonshot” basket or what you can call your “get rich quick” lottery ticket.
Cryptocurrencies (Bitcoin, Ethereum), individual stocks, penny stocks, or any other high-risk asset you believe in.
The Goal is to satisfy your FOMO and give you exposure to an asymmetric upside (where you can gain 10x or 20x).
But don’t forget the Golden Rule!
This must be money you are 100% willing to lose. Let us call it “Play Money.” If it goes to zero, your financial plan (the “Stability” end) is completely unaffected.
This hybrid approach is a possible sane path forward. It honours the anxiety about the future with a rock-solid, stable core. And it honours the desire for excitement with a small, ring-fenced “casino” fund.
Your First Crore: A Game of Patience or Panic?
The path to your first crore will not be a single 100x trade. Far from it! In fact, it will be the result of a thousand small, “boring” decisions like funding your SIP every month, increasing it by 10% every year, and letting it compound for decades.
This generation is the most financially savvy in India’s history with access to more information and more tools than any that came before. The challenge is not a lack of options but an excess of it. Too much information is also not good.
The “Great Generational Gamble” isn’t about choosing crypto or SIPs. It’s about having the discipline to separate them and win in both. Build your wealth with stability and use your FOMO fund to buy your lottery tickets. That is how you win the game. All the best!
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 discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
