The Twin Effect of Applicability and Awareness on Perceived Benefits of Systematic Investment Plan (SIP’S) among Gen Z Students: An Exploratory Study

This exploratory study investigates the twin effects of applicability and awareness on the perceived benefits of Systematic Investment Plans (SIPs) among Generation Z (Gen Z) students in India. Despite the growing digitization and democratization of financial tools, Gen Z a generation characterized by technological fluency often lacks the financial literacy to leverage investment opportunities like SIPs. This research addresses the dual deficiency of awareness (cognitive understanding of SIPs) and applicability (perceived relevance to personal financial situations) as key barriers to SIP adoption. Drawing on behavioural finance and diffusion of innovation theory, the study employs a quantitative methodology, utilizing a structured questionnaire with 35 Likert-scale items administered to 200 Gen Z students. Descriptive statistics reveal moderate-tohigh agreement across variables, with strong internal consistency (Cronbach’s α = .969). Correlation analyses demonstrate significant positive relationships among key constructs, particularly between knowledge of SIPs, awareness, behaviour, and perceived benefits (e.g., V06-V05: r = .754, p < .001). However, variability in responses for applicability (V04) suggests nuanced perceptions of SIP relevance. The findings underscore the critical role of financial literacy and contextual relevance in shaping investment behavior. The study highlights the need for targeted educational interventions, tailored marketing strategies, and policy measures to bridge the awareness-applicability gap. Implications extend to stakeholders including educators, financial institutions, and policymakers, offering actionable insights to enhance SIP adoption among Gen Z. By integrating financial literacy with real-world applicability, this research contributes to fostering informed and disciplined investment habits early in life, ultimately promoting long-term financial security for younger generations.