Where should a 25-year-old invest to build wealth: SIPs, stocks or crypto?

At 25, with time on your side, what's the smartest way to invest, i.e., SIPs (Systematic Investment Plans), stocks or crypto? Let's have a look.

In Short

• Experts say investing choices depend on income, liabilities and personal goals
• SIPs are described as discipline tools, not standalone asset classes
• Direct stock trading remains risky, with most traders losing money

You get your first salary, and suddenly money feels very real. There’s rent to pay, plans to make, maybe a small splurge, and then comes that quiet, slightly confusing question, i.e., what should I actually do with the rest so it grows?

I was reminded of this recently when one of my colleagues, who is 25 and has just started his first job, asked me for advice. “Where should I invest? SIPs, stocks or crypto? What’s the right way to build real wealth?”

Honestly, it’s not just his dilemma. A lot of young people today are asking the same question. Scroll through social media, and everyone seems to have an answer—quick returns, stock tips, crypto bets. But clarity is often missing. So, instead of relying on noise, I reached out to experts to understand what really works when you’re just starting out.

START SIMPLE, NOT SMART

If there’s one idea that cuts through the clutter, it’s this: don’t try to be clever too early.

For Aswini Bajaj, CEO of Leveraged Growth, investing is deeply personal and context-driven. “Investing is contextual. Income, liabilities, family support, and future expenses matter more than thumb rules. There is no standard formula.”

But when it comes to building wealth over the long term, say 10 to 15 years, his advice is refreshingly simple. “Start simple. Build a portfolio using ETFs such as Nifty 50, midcap, and small cap, and add 5–15% to gold and silver ETFs. The focus is not on being smart initially. It is on being consistent.”

The idea is clear, i.e., don’t over-complicate things in the beginning. What matters more is staying invested.

SIPS, STOCKS OR CRYPTO: WHAT SHOULD COME FIRST?

One of the biggest confusions for young investors is choosing between SIPs, direct stocks, and newer options like crypto.

Bajaj is quick to point out that SIPs are often misunderstood. “SIP is not an asset class. It is a discipline mechanism.”

In simple terms, SIP is just a way of investing regularly. Whether you use SIPs in mutual funds or invest in ETFs every month, the goal is to build a habit.

When it comes to direct stocks, he urges caution. “There are about 5,500 listed companies, but most capital flows into a limited set tracked by professionals. Why will you outperform that on a part-time basis? Also, data shows that 93% of traders lose money.”

Piyush Jhunjhunwala, Founder and CEO of Stockify, takes a slightly more balanced view. He suggests spreading investments across different options.

“Your goal is probably to have a 60% to 70% allocation to SIPs, 20–30% to stocks, and 5–10% in cryptocurrencies.”

The message from both is clear, i.e., build a strong base first, and then layer risk carefully.

IS SIP THE SAFEST WAY TO BEGIN?

For most beginners, SIPs remain the easiest entry point, and both experts agree on that.

“SIP is the easiest way to start. It removes timing decisions and builds consistency,” says Bajaj.

Jhunjhunwala agrees, “SIPs are a very secure form of investment. They help to reduce the effect of market volatility by utilising rupee cost averaging, and they develop financial discipline in the investor.”

But there’s a catch. SIPs are not magic.

“Safety does not come from SIP. It comes from consistency, time horizon, and diversification,” explains Bajaj.

HOW MUCH RISK IS OKAY AT 25?

At 25, time is your biggest advantage. But that doesn’t mean taking reckless bets.

“Higher risk does not mean speculation. It means structured allocation,” Bajaj explains.

He also reminds that markets don’t always rise. “During Covid, markets fell close to 38%. Most young investors have not experienced such phases.”

Jhunjhunwala adds that while higher risk is acceptable at this age, it should still be balanced. “You might want to consider investing 70% to 80% in relatively stable investments and the rest in higher-risk options.”

So yes, take risks, but understand them first.

CRYPTO: OPPORTUNITY OR UNCERTAINTY?

Crypto is often the most debated part of a young investor’s portfolio.

Bajaj prefers to stay away completely. “The issue is not returns. It is predictability. In crypto, timing is almost everything.”

He points out that returns can vary wildly depending on when you enter, making it difficult to rely on as a core wealth-building tool.

Jhunjhunwala, however, suggests limited exposure. “Cryptocurrencies should be treated as a speculative asset rather than as a wealth-building foundation. You need only to have a small part of your total investment (5%-10%) in cryptocurrency.”

Both agree on one thing, i.e., crypto should never be the main strategy. At best, it’s a small, high-risk add-on.

DON’T IGNORE DIVERSIFICATION

Diversification sounds complicated, but it doesn’t have to be.

“If you invest through ETFs or mutual funds, you already get diversification,” Bajaj explains.

Adding a small allocation to gold can also help balance risks.

Jhunjhunwala puts it more simply, “Instead of putting all of your eggs in one basket, spread your investments across different assets.”

For a 25-year-old, being equity-heavy is fine, as long as there is some balance.

THE BIGGEST MISTAKES YOUNG INVESTORS MAKE

If there’s one trap young investors often fall into, it’s overconfidence.

“Markets have been favourable, so many assume they understand everything,” Bajaj says.

This often leads to risky bets in small-cap stocks or crypto without proper understanding.

Jhunjhunwala adds, “Many people are overly motivated by quick returns, use social media information blindly, and ignore disciplined investing.”

Another key mistake is confusing activity with growth. Frequent trading may feel productive, but rarely builds wealth.

A SIMPLE STARTING PLAN

So, what should someone actually do?

Bajaj suggests keeping it simple: “If monthly income is Rs 25,000, start by investing Rs 5,000– Rs 7,000 Avoid stock picking in the beginning.”

Jhunjhunwala also recommends a practical, SIP-focused approach, increasing investments gradually as income grows.

The common thread is simple, i.e., start small, stay regular, and build over time.

SO, WHAT’S THE RIGHT ANSWER?

Coming back to my colleague’s question, i.e., SIPs, stocks or crypto—the answer isn’t a single choice.

It’s a mix.

Start with SIPs or ETFs for discipline. Add stocks only when you understand them better. Treat crypto cautiously, if at all. And most importantly, stay consistent.

Because in the end, building wealth is less about finding the “perfect” option, and more about sticking to a simple plan for long enough to see it work.

- Ends