Investing ₹10,000 every month is great. But investing the same ₹10,000 for 20 years is a mistake. Why? Because your salary increases every year. Your investment should too.
This is called Step-Up SIP (or Top-Up SIP). It is the secret weapon that smart investors use to cut their retirement time by 8-10 years.
This guide proves mathematically why a small yearly increase (just 10%) can double your final corpus.
Free Step-Up SIP Calculator
Check the difference yourself. See how much “Extra Money” you make just by clicking one button.
Step-Up SIP Calculator
Comparison: Step-Up made you ₹46L richer! 🚀
The "Salary Hike" Strategy
Most people get a 10% salary hike every year.
- Average Person: Spends the extra money on lifestyle (New Phone, Car EMI).
- Smart Investor: Invests 50% of the hike into SIP.
The Rule: If your salary increases by ₹5,000, increase your SIP by ₹2,500.
Normal SIP vs. Step-Up SIP: The ₹1 Crore Race
Goal: To reach ₹1 Crore. Starting SIP: ₹10,000. Return: 12%.
| Strategy | Monthly Investment | Time Taken to Hit ₹1 Cr |
|---|---|---|
| Normal SIP | ₹10,000 (Fixed forever) | 20 Years |
| Step-Up SIP | Start ₹10k + Increase 10%/yr | 12 Years |
Victory: You retire 8 years early just by increasing your investment slightly every year.
How to Enable Step-Up SIP?
You don't need to do calculations manually every month. All apps (Zerodha, Groww, Coin) have an automatic feature.
- While Starting SIP: Look for a checkbox "Top-Up" or "Step-Up".
- Select Frequency: Choose "Yearly".
- Select Amount: Choose "10%" or Fixed Amount "₹1,000".
Note: If your current SIP doesn't have this, you can simply start a new separate SIP of ₹1,000 every year.
Best Funds for Step-Up Investing
Since Step-Up is a long-term game (10-15 years), you need funds that can beat inflation.
- Parag Parikh Flexi Cap Fund: Buy global stocks (Google/Microsoft) and Indian giants.
- Quant Mid Cap Fund: High risk, high reward. Perfect for aggressive step-up.
- HDFC Index Fund (Sensex): Simple, boring, but guaranteed to match the market.
Use Lumpsum Calculator | Use Normal SIP Calculator
Disclaimer: Step-Up SIP increases your risk exposure as you invest more when markets might be high. Always consult a financial advisor.