For many years, gold was the first choice for Indian families. It felt safe and traditional. But now, young investors are picking Systematic Investment Plans (SIPs) more often.
What is a SIP?
A SIP lets you invest a small, fixed amount every month in mutual funds. It is simple and helps build money slowly through compounding. Experts say this makes SIPs a strong tool for long-term savings.
Why are SIPs getting popular?
- Record growth: According to the Association of Mutual Funds in India (AMFI), SIP contributions touched a record ₹28,000+ crore in July 2025, with more than 9 crore active accounts.
- Low entry point: Many funds allow SIPs starting from just ₹500 per month, making it easy for young earners to begin.
- Better financial awareness: More people are learning about investing through social media, finance platforms, and government education campaigns.
What about gold?
Gold still holds importance in India, especially for weddings and festivals. But very high prices have slowed down jewellery demand. Reports from the World Gold Council say that India’s 2025 gold demand may fall to a five-year low because of record-high prices.
What do experts say?
Financial advisors suggest a balance. Gold adds safety, but SIPs help create wealth by beating inflation over time. The rise in SIP participation shows young investors want steady, goal-based growth rather than just holding traditional assets.
The bottom line
India’s savings culture is shifting. From keeping money in gold to building long-term wealth through SIPs, young investors are driving a new era of savings. This change could play a big role in shaping India’s financial future.
