As participation expands, market participants say the key debate is less about access and more about the role each asset class should play in early-stage investing.
SIPs remain the structural core
Across investment perspectives, equity mutual fund SIPs are consistently positioned as the anchor of early portfolios, primarily due to their link with long-term compounding and disciplined investing behaviour.
Shashank Udupa, SEBI-registered investment advisor and fund manager, described SIPs as the most effective mechanism for early wealth creation, noting that their strength lies in consistency rather than market timing or product selection.
Sumit Gupta, Co-founder of CoinDCX, one of India’s cryptocurrency exchanges, similarly placed equity SIPs in the context of long-term financial goals, particularly wealth accumulation over extended horizons.
Gold as hedge, not return driver
Gold is broadly viewed through a stabilisation lens rather than as a growth asset, with most allocation frameworks placing it in a defensive role within portfolios.
Udupa suggested that gold, typically accessed via ETFs or electronic gold instruments, functions as a hedge against equity volatility and macroeconomic uncertainty, with indicative allocations around 8–10% in diversified portfolios.
This positioning of gold as a portfolio stabiliser rather than a performance driver was also reflected in broader market commentary on how traditional safe-haven behaviour is evolving in a more volatile macro environment.
Crypto: Small allocation, high risk debate
Cryptocurrencies remain the most contested component of early portfolios, particularly in terms of allocation size and investor understanding.
Aswini Bajaj, CEO of Leveraged Growth, a finance-based business consultancy firm, cautioned that easier access to digital assets has not always been matched by investor comprehension. He pointed to the role of aggressive marketing and influencer-driven narratives in shaping expectations, particularly among first-time investors, and stressed the importance of distinguishing between access and informed investing.
ALSO READ | Bitcoin slides to six-week low amid ETF outflows, Iran tensions
Udupa, in a similar vein, suggested that crypto exposure, where included, typically remains limited, often in the range of 3–5%, and becomes speculative when allocations rise without a clear understanding of risk or underlying drivers.
From stock picking to allocation-first behaviour
A broader shift highlighted by market participants is the transition in investor mindset, from individual stock selection to portfolio construction.
Udupa noted that first-time investors today are more likely to begin with questions around asset allocation rather than specific stock picks, a change enabled by platforms such as Zerodha, Groww, Motilal Oswal and smallcase, which have simplified access to diversified portfolios.
Sumit Gupta said this reflects a more structured approach where investors align portfolios with time horizon, risk appetite and financial goals rather than single-product performance.
However, this shift has also introduced a new challenge: over-fragmentation.
When small investment amounts are spread across too many instruments, compounding effectiveness can weaken despite higher diversification on paper.
Global exposure reshaping expectations
Increasing exposure to global markets is also influencing how young investors interpret returns and risk. Comparisons across geographies, from US technology stocks to semiconductor-driven rallies in Asia, are now a routine part of retail investing discourse.
Aswini Bajaj noted that while this global visibility improves awareness, it also increases susceptibility to trend-chasing, particularly when recent outperformers are assumed to remain structurally strong without deeper evaluation of valuation or cycle risks.
Gold and Bitcoin: Contrasting volatility profiles
The divergence between traditional safe-haven assets and digital alternatives continues to be evident in volatility behaviour during periods of geopolitical stress.
Ross Maxwell, Global Strategy Operations Lead at VT Markets, a regulated global multi-asset broker, observed that Bitcoin’s realised volatility during such periods has typically ranged between 40% and 70%, significantly higher than gold’s 12% to 20% range. He noted that while gold has also seen sharper short-term swings in recent cycles, its overall volatility profile remains comparatively contained.
ALSO READ | Why gold and silver prices on MCX remain volatile amid global uncertainty
Vikram Subburaj, CEO, Giottus, an India-based cryptocurrency exchange and investment platform, added that gold’s volatility has risen into the upper end of its historical range in recent periods, but continues to operate within established long-term patterns, whereas Bitcoin remains structurally volatile even as market conditions evolve.
An evolving portfolio framework
Taken together, these perspectives reflect an emerging portfolio structure among young investors: equity SIPs as the core compounding engine, gold as a stabiliser, and cryptocurrencies as a limited, high-risk allocation where included.
Rather than replacing traditional investment frameworks, the shift appears to be in how early portfolios are being constructed, increasingly multi-asset, goal-oriented and influenced by both domestic market access and global financial narratives.
ALSO READ | Mahindra Manulife MF launches specialised investment fund platform
