Experts Urge Gen Z to Start SIPs in Their 20s, Targeting 25 Times Annual Expenses
Updated
Updated · Mint · Aug 11
Experts Urge Gen Z to Start SIPs in Their 20s, Targeting 25 Times Annual Expenses
1 articles · Updated · Mint · Aug 11
Summary
Time—not a high starting salary—is the biggest wealth-building edge for people in their 20s, Siddharth Maurya and Akshay Rao said ahead of International Youth Day.
A 10-year head start can sharply widen final returns through compounding, they said, arguing that delaying investing carries a large long-term cost.
₹10,000 monthly SIPs with 10% annual step-ups—rising to ₹11,000 and then ₹12,100—can help young earners increase investments as income grows instead of funding lifestyle inflation.
Rao said Gen Z should first build an emergency fund covering 6-12 months of essential expenses and repay high-interest debt before starting mutual-fund SIPs aligned with risk appetite.
For long-term financial independence, the experts advised diversified equity mutual-fund investing and avoiding social-media-driven bets on stocks or crypto, with a broad goal of building a corpus near 25 times annual expenses.