Neutral impactStocks
Should you raise your SIP now? Match it to income, not the market, say MFDs
Business Standard 2 hrs ago·21 Oct 2026, 11:57 am
Financial advisors are advising investors to base their Systematic Investment Plan (SIP) increases on their personal income growth rather than reacting to short-term market movements. By aligning your additional investments with your salary hikes, you ensure that you are investing a comfortable amount that you can sustain over time, regardless of market volatility.
This disciplined approach helps in building a larger retirement corpus compared to a fixed investment amount. For instance, if you increase your SIP by 10% annually with a 12% return, your final savings could be significantly higher than if you kept the amount constant, demonstrating the power of compounding over a long horizon.
Investors should focus on their long-term financial goals and avoid the temptation to time the market. Staying consistent and adjusting contributions as your income grows is a reliable strategy for wealth creation.
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