Step-Up SIP – What It Is & Why Use It

Introduction

You get salary hikes every year. But does your SIP grow with your income?
Step-Up SIP allows you to increase your investment amount annually — turning your disciplined investing into wealth-building magic.

What Is Step-Up SIP? 

 A Step-Up SIP increases your SIP contribution by a fixed percentage or amount every year — usually in line with your income growth.

  Real-Life Example: Rahul’s Wealth Leap

• Rahul started a SIP of ₹5,000/month at age 25 for 20 years.
• He added a 10% step-up every year.

💼 Assumed CAGR: 12%

Year	Monthly SIP	Total Invested	Final Corpus
1	₹5,000	₹19.8 Lakhs	₹1.17 Cr

📈 Without step-up: ₹49.9 Lakhs
📈 With step-up: ₹1.17 Crore Step-Up SIP helped Rahul more than double his wealth! Benefits of Step-Up SIP

✅ Matches your income growth

✅ Achieves goals faster
✅ Builds discipline gradually
✅ Takes advantage of compounding with higher amounts

Conclusion

Step-Up SIPs align investing with your life journey — starting small and growing big. It’s perfect for young earners who want to build wealth gradually and painlessly.

 Talk to your advisor or use your app to enable Step-Up SIP — and watch your wealth multiply.

Summary Table: Regular SIP vs Step-Up SIP (12% CAGR, 20 years)

SIP Type	Total Invested	Final Corpus
Regular SIP	₹12 Lakhs	₹49.9 Lakhs
Step-Up SIP	₹19.8 Lakhs	₹1.17 Cr