Project mutual-fund SIP returns
When planning a Systematic Investment Plan (SIP), most people pick a flat number—like ₹10,000 a month—and leave it running for 20 years. While this builds wealth, it completely ignores income growth.
If your salary increases by 10% every year, but your investments stay flat at ₹10,000, your savings rate is actually dropping in real terms. You are saving a smaller and smaller percentage of your total income each year.
A Step-Up SIP fixes this problem by automatically increasing your monthly investment by a fixed percentage (e.g., 10%) at the end of every year.
Because compounding favors early and consistently growing capital, stepping up your SIP drastically changes the math of the future value formula:
By matching your investment growth to your salary growth, you literally double your final corpus. More importantly, it is mathematically painless because you are only investing the extra money after you get a raise. Your take-home pay still goes up, you just ensure a portion of that raise automatically goes to your future self.
What is a 'Step-Up SIP'?
