A step-up (top-up) SIP raises your monthly investment every year, usually in line with your salary increase. Small yearly increases make a very large difference over time. Use the step-up option in the SIP calculator to try it.
₹10,000 a month for 20 years at 12%
| Flat SIP | Step-up SIP (+10% a year) | |
|---|---|---|
| Monthly SIP in year 20 | ₹10,000 | about ₹61,200 |
| Total invested | ₹24 lakh | ₹68.7 lakh |
| Value after 20 years | ₹99.9 lakh | ₹1.99 crore |
Raising the SIP by 10% each year roughly doubles the final amount. You invest more, but the extra feels manageable because it grows with your income.
How to set one up
- Most fund houses and apps offer a “top-up” option when you start a SIP: choose a fixed amount or a percentage each year.
- Match the step-up to your expected salary increase, for example 5–10%.
- If you cannot automate it, raise the SIP yourself each year after your appraisal.
Frequently asked questions
Is a step-up SIP better than a bigger flat SIP?
If you can afford a bigger SIP now, starting higher is even better because earlier money compounds longer. A step-up suits most people because income rises over time.
Are 12% returns guaranteed?
No. Equity fund returns vary from year to year; 12% is used here only to show the effect.
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