Key idea
A small upgrade to a normal SIP: increase the amount a little each year. Over a career, the effect on your final corpus is enormous.
A step-up SIP (or top-up SIP) automatically raises your monthly investment by a set amount or percentage each year. Instead of investing the same ₹10,000 forever, you might increase it by 10% annually, so it becomes ₹11,000, then ₹12,100, and so on, in step with your rising salary.
Why a small annual bump matters so much
- Yr3
- Yr8
- Yr13
- Yr18
- Yr24
- Yr30
- a flat SIP
- a step-up SIP
The green line is a step-up SIP; the blue is a flat one. Because each year's higher contribution has years left to compound, the gap between the two widens dramatically over a long horizon. Small, regular increases you barely feel become a much larger corpus.
Why it fits salaried life perfectly
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