Step-up SIP — the easiest way to double your corpus
Raising your SIP a little every year, in step with your salary, can double what you end up with. Here’s how much, and how to set it up.
Most people start a SIP and never touch the amount again. Meanwhile their salary rises 8–10% a year. A step-up SIP (also called a top-up SIP) raises the instalment by a fixed percentage every year, so your investing keeps pace with your income.
How big is the difference?
₹10,000 a month at 12%:
| Years | Flat SIP | 5% step-up | 10% step-up |
|---|---|---|---|
| 10 | ₹22.4 lakh | ₹26.9 lakh | ₹32.7 lakh |
| 15 | ₹47.6 lakh | ₹61.9 lakh | ₹82.8 lakh |
| 20 | ₹92.0 lakh | ₹1.28 crore | ₹1.86 crore |
| 25 | ₹1.70 crore | ₹2.48 crore | ₹3.94 crore |
Over 20 years, a 10% step-up doubles the final amount. You do put in more (₹68.7 lakh vs ₹24 lakh), but each step feels painless because it’s funded by a raise you haven’t got used to yet.
Why it works so well
Two engines run together: compounding on the money already invested, and a growing contribution that feeds it more each year. The later, bigger instalments get less time to compound, but there are many more of them.
How to set one up
- Most fund houses and investing apps offer a top-up option when you start a SIP. Pick a fixed % (5–10%) or a fixed amount each year.
- No top-up option? Set a calendar reminder for your appraisal month and raise the SIP by hand.
- A simple rule: raise your SIP by half your salary hike. A 10% raise → 5% step-up, and you still enjoy the rest.
Plan a goal backwards, with step-up built in, using the goal planner.