What Is a Step-Up SIP?
A step-up SIP increases your monthly investment by a fixed percentage (typically 10%) every year. This aligns with your expected income growth. As your salary increases, your SIP increases automatically. The impact on your final corpus is dramatic because the additional investments also benefit from compounding.
Step-Up vs Fixed SIP Comparison
A ₹10,000 monthly SIP at 12% returns for 20 years with no step-up grows to ₹99 lakhs (total invested: ₹24 lakhs). With a 10% annual step-up, the same SIP grows to ₹1.85 crores (total invested: ₹38 lakhs). The step-up nearly doubles the final corpus while increasing total invested by only 58%.
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