A "flat" SIP is good, but a "Step-Up" SIP is a weapon of mass wealth creation. As your income grows every year with increments and promotions, your investments should grow too. This is the logic behind a Top-up or Step-up SIP.
Compare two investors starting with ₹10,000 per month for 20 years at 12% returns:
By simply increasing the SIP as their salary increases, Investor B ended up with 2x the wealth of Investor A. Most of this growth happens in the last 5 years of the investment.
Our SIP calculator is one of the few that allows you to model an annual step-up percentage.
Calculate Step-Up SIPMathematically, Step-up SIP helps you invest more when you can afford it. It also helps you reach your financial goals (like retirement or a child's marriage) much faster. It effectively combats inflation, as your investment power increases faster than the cost of living.
A standard 10% to 15% annual increase is recommended for most salaried employees in India. This matches the average salary hike, ensuring your lifestyle and savings grow in tandem.