Step-up SIP: why raising your SIP every year changes everything
A ₹10,000 SIP raised by 10% a year can grow to about twice what a flat SIP builds over 20 years.
Your salary goes up most years. If your SIP doesn't, you are investing a smaller and smaller share of your income.
The difference over 20 years (12% a year)
- Flat SIP of ₹10,000: you invest ₹24 lakh, which grows to about ₹1 crore.
- SIP starting at ₹10,000, raised 10% every year: you invest about ₹68.7 lakh, which grows to about ₹1.99 crore.
The step-up SIP almost doubles the final amount. It does ask you to invest more, but in step with your rising income.
How to set it up
Most fund houses and investment apps offer a "top-up" or "step-up" option when you start the SIP: choose a fixed amount or a percentage, raised once a year. If yours doesn't, set a yearly reminder after your appraisal and raise it by hand.
This article is general information, not personal financial advice. Rules and rates change; check the latest before you act.