Why a Step-Up SIP Builds More Wealth
A step-up SIP (also called a top-up SIP) automatically increases your monthly investment by a fixed percentage every year. Since your income usually rises annually, stepping up your SIP keeps your investments growing in line with your earnings.
The impact is dramatic over long periods. Even a 10% annual step-up can result in significantly more wealth at maturity compared to a flat SIP, because you are investing more during the years when compounding has the most time to work.
Frequently Asked Questions
What is a step-up SIP?
It is a SIP where you increase your monthly contribution by a set percentage each year, helping your investments grow as your income rises.
How much should I step up my SIP each year?
A common choice is 10%, roughly matching average salary growth. Even 5% makes a meaningful difference over the long term.