The tech-fluent 377 million Gen Z population in India has a massive social media presence. Their social networking channels are constantly buzzing with stock market updates all the time. Driven by FOMO and YOLO energy, most of them want to be financially savvy, make quick money and live a better life. At least 30% of Gen Z begin investing in university or early adulthood, compared to 15% of millennials, 9% of Gen X, and 6% of Baby Boomers, according to the World Economic Forum Survey. That explains why 48% of them are already investing in stock markets. But they must understand that investing isn’t about trends, clout, or hype culture. It is about learning the basics, making continued investments, and maintaining discipline.
Here are the rules every Gen Z investor should swear by before embracing a financial future driven by young investors in India.
Understand the basics first
Like everything else, even thoughtful investing requires education. It is crucial for new investors to understand concepts such as diversification, compounding, asset allocation, risk tolerance and tax treatment rather than chasing trends. A recent survey revealed that less than 10% of Indian households invest in securities markets, indicating the need for more financial literacy. Thus, spending time to understand how markets work can build confidence and positively affect outcomes.
Stay disciplined
One of the many myths among new investors is that you can consistently ‘time the market’ by buying at the lowest point and selling at the top. In reality, it is quite the opposite, as even professionals cannot predict market highs and lows. What truly works in the long run is consistency and patience.
Research shows that disciplined investing via systematic investment plans (SIPs) helps overcome market volatility and enhances compounding money over time, regardless of the state of the economy.
Prioritise SIPs
Consistently investing in SIPs is one of the most effective ways to build long-term wealth. Indian mutual fund SIP assets touched ₹15 trillion”> ₹15 trillion by mid-2025, making it one of the fastest growth periods in history. By 2035, the Indian mutual fund industry’s assets under management are likely to cross ₹300 trillion”> ₹300 trillion, showing the increasing retail confidence in these plans.
The practice of making SIP contributions regularly brings financial discipline and takes advantage of rupee-cost averaging, mitigating the effect of temporary market fluctuations. The youth must gradually increase their SIP amounts as their income grows to build their corpus in the long run, without affecting the monthly budget.
Use index & passive products to debut
For new investors, index funds and other passive products, such as exchange-traded funds (ETFs), offer a simple yet powerful way to enter the equity markets. These financial tools follow general market standards, which help you manage risk and avoid heavy bets that might be uncertain.
India’s passive investment segment has grown significantly, with ETFs crossing ₹10 lakh crore”> ₹10 lakh crore in assets under management, doubling in just three years to October 2025.
New investors who begin their journey with index funds can reap the rewards of whole-market growth while gaining the knowledge of equity investing without the stress of selecting individual stocks.
Stay away from social media sham and scam
Tech-savvy young investors today are constantly swamped with promotional content across various social media platforms. India has fallen prey to everything from deceitful stock advice to fake IPO schemes, and several cases are proof of these financial losses. These scams are laden with tall promises of great returns, leading to instant wipeout of hard-earned savings. Thus, it is crucial to make investments based on verified data and credible research. Stay financially literate and practice caution to stay protected from misinformation.
Choose cost-efficient options
Every rupee you save in costs is a rupee that stays invested and compounds over time. Direct mutual fund plans, which bypass distributor commissions, tend to have lower expense ratios than regular plans. Their adoption has been rising among retail investors, and direct plan participation climbed from 12% in 2019 to 27.37% by September 2025.
Lower costs can obviously enhance net returns, especially over long periods, making direct plans an attractive option for self-directed investors who take time to understand products.
Have a long-term mindset
Because of their age, Gen Z is uniquely positioned to benefit from compounding over decades. The generation is known for instant gratification, but they must understand that market success takes time. It rewards patience, discipline and informed decision-making. Thus, they must invest regularly and stay grounded in fundamentals to build portfolios that beat volatility and grow over time.
Remember that 2026 should be about smart participation in markets through informed decisions around wealth creation rather than reactive trading or chasing tips.
Saurabh Agarwal is chief business officer at Angel One.
