Question 1

What is a Step-Up SIP?

Accepted Answer

A Step-Up SIP (also called a Top-Up SIP) is a SIP where you increase your monthly investment by a fixed percentage every year. For example, if you start with Rs 10,000/month and add 10% each year, it becomes Rs 11,000 in year 2, Rs 12,100 in year 3, and so on.

Question 2

How much more does a Step-Up SIP earn compared to a regular SIP?

Accepted Answer

The difference is significant over long periods. A Rs 10,000/month SIP at 12% for 20 years gives Rs 99.9L corpus. A 10% annual step-up on the same starting SIP gives approximately Rs 1.98 Cr - nearly double. The exact comparison is shown in this calculator.

Question 3

What is a good annual step-up percentage?

Accepted Answer

Linking the step-up to your annual salary increment is a practical approach. If you expect a 10% increment, increase your SIP by 10%. Even a 5% annual step-up substantially outperforms a flat SIP over 10+ years.

Question 4

Can I do a step-up SIP with any mutual fund?

Accepted Answer

Most major mutual funds and AMCs support step-up or top-up SIPs. You can set a fixed amount increase or a percentage increase annually. Some platforms also allow one-time manual increases rather than automatic annual increments.

Year	Amount Invested	Est. Returns	Total Value
Yr 1	₹1.20 L	₹8,093	₹1.28 L
Yr 2	₹2.52 L	₹33,241	₹2.85 L
Yr 3	₹3.97 L	₹79,210	₹4.76 L
Yr 4	₹5.57 L	₹1.50 L	₹7.07 L
Yr 5	₹7.33 L	₹2.52 L	₹9.85 L
Yr 6	₹9.26 L	₹3.90 L	₹13.16 L
Yr 7	₹11.38 L	₹5.71 L	₹17.10 L
Yr 8	₹13.72 L	₹8.04 L	₹21.76 L
Yr 9	₹16.30 L	₹10.97 L	₹27.27 L
Yr 10	₹19.12 L	₹14.62 L	₹33.74 L

Step-Up SIP Calculator

Year-by-Year Breakdown

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