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Rs 10,000 SIP With A 10% Annual Step-Up: How Much Could You Have After 20 Years?
NDTV Profit 1 hr ago·3 Sept 2026, 6:30 am
A Systematic Investment Plan (SIP) with a step-up feature allows investors to increase their monthly contribution by a fixed percentage each year. This strategy helps the investment amount grow alongside your income, ensuring your savings remain relevant as your financial responsibilities expand. By consistently raising the SIP amount, you invest more capital into the market over time, which can significantly enhance the potential returns on your investment portfolio.
This approach matters because it fights the natural tendency to spend additional income earned over time. Instead of increasing lifestyle expenses, the step-up SIP automatically boosts your savings. This disciplined compounding effect can lead to a much larger corpus at the end of the investment tenure compared to a static SIP of the same initial amount. It is a powerful tool for long-term wealth creation.
Investors should watch their step-up percentage carefully. A higher step-up rate accelerates wealth accumulation but requires a higher monthly cash flow. It is essential to ensure that the increased SIP amount fits comfortably within your monthly budget to avoid financial strain. Regularly reviewing the step-up rate in line with salary hikes is a good practice to maintain this strategy.
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