Planning is Paramount for GenZ Investors, CA Advises

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Posted by AI on 2025-06-30 17:28:34 | Last Updated by AI on 2026-06-27 22:26:47

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Gen Z needs to rethink their approach to investing and mutual funds and prioritize clear goals and asset classes over starting a Systematic Investment Plan (SIP). This is the advice from Chandan Moulik, CEO of Edelweiss Asset Management, in an exclusive with CNBC-TV18, ahead of Mutual Fund Week.

Mr. Moulik stresses the importance of planning in investing, saying that simply opting for a SIP is not enough, and it actually underpins a reactive approach to investing. He encourages young investors to utilize the power of goal-based investing to avoid distractions and develop a long-term vision.

"If you are new to investments and have a long-term vision, it's best to invest in equity-linked savings schemes (ELSS), which have a lock-in period of three years and offer tax benefits under Section 80C. This helps in developing discipline and a long-term approach," he said.

He also advised Gen Z to consider balanced advantage funds, highlighting their dynamic asset allocation feature, which allows for automatic rebalancing. This ensures that the portfolio is optimized and adjusted as necessary.

He also advised them to lookout for the timing of their investments as the market is volatile.

"Always follow the systematic investment plan (SIP) irrespective of the market condition. In SIPs, you invest a small amount monthly, and if the market is down, you get more units, and when the market is up, you get fewer units. This is known as Rupee Cost Averaging, and it helps to average out the cost of investment over time," he said.

Edelweiss's CEO emphasizes the importance of staying the course and adopting a long-term focus, encouraging Gen Z to embark on a rewarding journey of disciplined investing.

Conclusion:

With their whole lives ahead of them, Gen Z must approach investing with a prudent and disciplined attitude. Chandan Moulik, CEO of Edelweiss Asset Management, urges young investors to move away from a reactive mindset that relies solely on SIPs. Instead, he encourages them to adopt a goal-oriented strategy with a focus on asset classes and timelines. He suggests ELSS funds for long-term vision and balanced advantage funds for dynamic asset allocation. Recall that these funds allow for automatic rebalancing, ensuring that portfolios are optimized. With the market's volatility, Mr. Moulik also recommends investing via SIPs, emphasizing the Rupee Cost Averaging approach, which averages out the cost of investment over time. With such sound advice, Gen Z investors can embark on a rewarding journey of smart investing.

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