<div style="text-align: justify">Generation Y or ‘Millennial’ is the generation of reading (and writing) this article. Our generation is known to be the one that is more short-term oriented than long-term, unlike the one we recently passed &#8211; Gen X.</div>
<div style="text-align: justify">While Gen X was focused primarily on the creation of wealth with the motive of creating savings, our generation is more inclined towards the idea of the creation of wealth with the idea of spending it.</div>
<div style="text-align: justify">Now, in a situation like this, how can we, Gen Y, save “x” amount in order to settle in, expand our family a few years later, buy a house, and then retire with an amount of money flowing in every month? At times when our primary motive is to spend, how can we add to the element of cost saving in our monthly planning?</div>
<div style="text-align: justify">The answer to this question and the solution to a myriad of problems that comes with lack of proper financial management lie in three letters, SIP &#8211; <span><a href="https://www.fundsindia.com/content/jsp/lp/sipfund1.do"><strong>S</strong>ystematic <strong>I</strong>nvestment <strong>P</strong>lan</a></span>.</div>
<div style="text-align: justify">Systematic Investment Plan (SIP) has emerged as the best form of Mutual Funds Investment of the present time. And in this article, we will look into the reasons that make it the best.</div>
<div style="text-align: justify"><strong><br /><a rel="nofollow" href="https://haznos.org/wp-content/uploads/2018/09/sip.jpg"><img src="https://haznos.org/wp-content/uploads/2018/09/sip.jpg" alt="" width="1000" height="625" class="aligncenter wp-image-11999 size-full" /></a></p>
<p>Reasons Why SIP is the Best Form of Investment for the</strong><strong>Millennial</p>
<p></strong></div>
<div style="text-align: justify">
<ol>
<li><strong>You Become a Part of a Disciplined Investment Approach</strong></li>
</ol>
</div>
<div style="text-align: justify">The biggest complaint of our generation is our money being spent even before we get to a stage where we save something.</div>
<div style="text-align: justify">Now, when you add this to the growing value of money and to the expense-rich time that our future belongs to, you can find yourself staring into a very hand to mouth scenario.</div>
<div style="text-align: justify">To combat this dire situation, the need of the hour is to <strong>get serious about investments</strong>. And this seriousness is what SIP can deliver.</div>
<div style="text-align: justify">By giving the investors the freedom to invest a low amount, SIPs instil the habit of savings in our ready to spend generation.</p>
</div>
<div style="text-align: justify">
<ol start="2">
<li><strong> </strong><strong>You get to take Advantage of Rupee Cost Averaging</strong></li>
</ol>
</div>
<div style="text-align: justify">Rupee Cost Averaging is one of the most effective investment strategies that a busy investor can avail. All that the investors have to do is make an investment on a regular basis for a long time duration. As the amount, if constant, you would buy greater units when the price of SIP is low and lesser when the price is much higher.</p>
</div>
<div style="text-align: justify">
<ol start="3">
<li><strong> </strong><strong>You Get to Avail the Benefits of Compounding</strong></li>
</ol>
</div>
<div style="text-align: justify">The secret to creating wealth through Systematic Investment Plan lies in starting investment from an early stage and then continue investing on a continuing basis. When you invest in a SIP, you get monthly returns. These returns are then added in your actual amount of investment and are invested again. Now the greater the tenure of this continued cycle, the greater is the compound interest and the greater is the growth of the amount.</p>
</div>
<div style="text-align: justify">
<ol start="4">
<li><strong> </strong><strong>You Don’t Have to Monitor the Performance of the SIP every Waking Second</strong></li>
</ol>
</div>
<div style="text-align: justify">Unlike other forms of <span><a rel="nofollow" href="https://www.fundsindia.com/">Mutual Fund Investments</a></span>, you do not have to be present in front of your computer screen with a stock market website 24 hours. All you have to do is open a SIP account one time, allot an amount of money and forget about it.</div>
<div style="text-align: justify"></div>
<div style="text-align: justify">You will frequently get the statement of account with which you can monitor your investment, on the basis of which you can decide whether to continue or redeem the SIP amount into your bank account.</p>
</div>
<div style="text-align: justify">
<ol start="5">
<li><strong> </strong><strong>You Have the Freedom to Start or Stop the SIP Investment Anytime you Want</strong></li>
</ol>
</div>
<div style="text-align: justify">The best part about SIPs is that they are highly flexible. You can stop a SIP, start them whenever you want again, increase the amount you wish to invest or lower it for a few months. Also, you get the freedom to redeem the amount from the SIP account to your bank account whenever you see fit and you need some cash.</p>
</div>
<div style="text-align: justify">
<ol start="6">
<li><strong> </strong><strong>You Can Invest Small Amounts</strong></li>
</ol>
</div>
<div style="text-align: justify">The one way through which SIP investment has managed to become the favourite of modern-day investors, who prefer playing safe is by allowing them to invest as low as Rs.500 every month.</div>
<div style="text-align: justify">With the amount of investment as low as Rs.500, investors believe that there is very less to lose, which ultimately makes them more open towards SIP investments.</p>
</div>
<div style="text-align: justify">
<ol start="7">
<li><strong> </strong><strong>You Get to Save Tax Under Section 80C</strong></li>
</ol>
</div>
<div style="text-align: justify">The last and best part about SIPs, which gets it the biggest attention, is that when you invest in ELSS or Equity based SIPs, you get to save tax under Section 80C of the Income Tax Act, 1961, although there is a lock-in period of <strong>3 years</strong>.</div>
<div style="text-align: justify">However, even with the lock-in period, SIPs can be the best form of tax redemption with its promise of a much higher return than any other form of Tax Saving investment.</div>
<div style="text-align: justify">Do you know of any other reasons that SIP investments are awesome? Or do you know of any other investment that provides these benefits? Let us know in the comments below!</div>
<div style="text-align: justify"><span> </span></div>

7 Reasons that Make SIPs the Best Form of Investment for Gen Y
