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Understanding Step Up SIP

A Step Up SIP is a systematic investment plan where you increase your monthly investment amount by a fixed percentage every year. This strategy helps you build wealth more effectively by increasing your investments as your income grows.

📈 Benefits of Step Up SIP

• Aligns with salary increments
• Harnesses the power of compounding
• Builds discipline in investing
• Helps achieve long-term financial goals
• Reduces the impact of inflation

🎯 How It Works

Year 1: Invest ₹10,000 monthly

Year 2: Increase by 10% to ₹11,000 monthly

Year 3: Increase by 10% to ₹12,100 monthly

And so on...

Step Up SIP vs Regular SIP

Comparison Example

Regular SIP (₹10,000 monthly)

• Year 1: ₹1,20,000
• Year 2: ₹1,20,000
• Year 3: ₹1,20,000
• Total: ₹3,60,000

Step Up SIP (10% increase)

• Year 1: ₹1,20,000
• Year 2: ₹1,32,000
• Year 3: ₹1,45,200
• Total: ₹3,97,200

Investment Strategies

🎯 Conservative Approach

Start with 5-7% annual step-up, focus on debt funds and balanced funds for stable returns.

⚖️ Moderate Approach

Use 10-12% annual step-up with a mix of equity and debt funds for balanced growth.

🚀 Aggressive Approach

Apply 15-20% annual step-up with equity-focused funds for maximum growth potential.

Tips for Successful Step Up SIP

💡 Planning Tips

• Align step-up with salary increments
• Start with a conservative step-up rate
• Review and adjust annually
• Consider inflation in your calculations
• Maintain emergency fund separately

⚠️ Important Considerations

• Ensure consistent income growth
• Don't overstretch your budget
• Monitor market conditions
• Diversify across fund categories
• Stay committed for long-term

Ready to Start Your Step Up SIP?

Our financial advisors can help you create a personalized step-up SIP strategy that aligns with your income growth and financial goals.

Step Up SIP Calculator

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Investment Summary