The Power of the Step-Up SIP
As your career progresses and your income grows, your investments should scale proportionally to combat lifestyle inflation. A Step-Up SIP (or Top-Up SIP) is an automated mandate where you instruct your mutual fund house to increase your monthly contribution by a fixed percentage (or fixed amount) every 12 months.
Why Step-Up SIP is Better Than Standard SIP
- Matches Income Growth: It automatically aligns your savings rate with your annual salary increments, ensuring you don't succumb to unchecked spending.
- Combats Inflation: A static SIP loses purchasing power over 15 to 20 years. Stepping up your contributions guarantees your investment velocity stays ahead of inflation.
- Reaches Goals Faster: By compounding both your returns *and* your principal contributions, you can achieve your target corpus significantly earlier than a standard flat-rate SIP.
How Our Engine Calculates This
Standard SIP formulas fall short when the principal changes dynamically. Our Step-Up calculator utilizes an iterative computational model. It processes your portfolio month-by-month, accurately compounding each individual payment for its remaining lifespan while triggering your chosen percentage hike precisely on the 13th, 25th, and 37th months.