Most people start a SIP when they get their first job and never change the amount. Ten years later their salary has doubled but the SIP is still ₹5,000. A step-up SIP fixes that by raising the amount automatically every year.
What a step-up SIP is
A step-up (or top-up) SIP increases your monthly instalment by a fixed percentage or amount once a year. Most fund houses and platforms let you set this when you register the SIP.
Flat vs step-up in rupees
₹10,000 a month for 20 years, assuming 12% a year (illustrative, not guaranteed):
| Yearly step-up | You invest | Approx. value after 20 years |
|---|---|---|
| None (flat) | ₹24 lakh | ₹1.0 crore |
| 5% | ₹39.7 lakh | ₹1.37 crore |
| 10% | ₹68.7 lakh | ₹1.99 crore |
Why it works
A 10% step-up roughly doubles the end value because the bigger instalments of later years still get many years to compound. And if your salary also grows 10% a year, the SIP stays the same share of your income.
The cost of waiting
Same ₹10,000 flat SIP at 12%, with a target year 25 years from now. Start today and you have about ₹1.9 crore at the end. Start five years later and you have about ₹1.0 crore. Waiting five years saves you ₹6 lakh of instalments and costs you about ₹90 lakh of final value.
How to set it up
- Match the step-up to your expected salary growth; 5–10% is common.
- Time it with your appraisal month so the increase never pinches.
- If your platform does not support step-up, raise the SIP manually every April.
- Keep your emergency fund and term cover in place before increasing equity SIPs.
Calculators for this guide
Finkoin tip
Compare a flat and a step-up SIP side by side, then see what a delay costs with your own amount.
Try it on Finkoin →FAQs
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