SIPs or systematic Investment Plans have risen as a popular way for investors to create wealth over time in a disciplined manner by investing regularly, especially in equity market instruments without timing risk. This paper intends to study the financial planning aspect of using SIPs for wealth creation over a long period and the findings would be based on the interplay of monthly investment amount, investment period, and market condition at the time of final corpus generation and Extended Internal Rate of Return (XIRR). The study was based on secondary data collected from AMFI SEBI NSE BSE RBI, and Morningstar and great portion of it pertains to the last financial year of 2020-21 to 2024-25. It covered equity mutual funds only and different monthly investment amounts ranging from 5,000 to 10,000 were considered. The methodology combined ratio analysis across profitability, liquidity, risk, efficiency and growth dimensions with Karl Pearson correlation and the associated t-test to examine relationships between key variables. Results showed that the portfolio value was almost eight times its starting value after the period of study, that XIRR was on average around 13. 80 percent and was always above the risk-free rate, and that investment time and total investment had positive and statistically significant correlations with portfolio value while monthly SIP amount and market return of the benchmark did not have much of an influence on the rate of return. It is found by the research that well-disposed, long-term SIP investing can be a strong means of wealth generation and it gives to the retail investors, financial advisors and policymakers who are involved in ensuring the financial security of households a very practical set of guidelines.
Dinesh, K., & Devi, K. (2026). Effectiveness of SIP Based Financial Planning for Long Term Wealth Creation. International Journal of Academic Excellence and Research, 02(02), 41–48. https://doi.org/10.62823/IJAER/02.02.203