Your Salary Rises 10% Every Year. Should Your SIP Rise By 10% Too?

A Systematic Investment Plan (SIP) is a disciplined way to invest a fixed amount regularly, regardless of market conditions. The headline suggests a direct 10% increase in your contribution each year, mirroring a salary hike. However, this approach may not be the most effective strategy for most investors. Instead, a better approach is to maintain a consistent SIP amount. This consistency allows you to buy more units when prices are low and fewer when prices are high, a strategy known as rupee-cost averaging. Over a longer duration, this disciplined approach helps smooth out the impact of market volatility, potentially leading to better long-term returns.
Key takeaways
- Category: Stocks.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.













