Why You Must Step-Up Your SIP Every Year
Increasing your SIP amount by just 10% every year aligned with your salary hike can double your final corpus. Here is how.
Beating Lifestyle Inflation
As our salaries grow, our expenses (lifestyle inflation) tend to grow with them. Most people start a ₹10,000 SIP and leave it running for 10 years without ever increasing it, despite their income doubling in that time.
The 10% Step-Up Rule
A Step-Up SIP automatically increases your monthly investment by a fixed percentage (e.g., 10%) every year.
If you start a ₹10,000 SIP for 20 years at 12%, you will accumulate about ₹1 Crore.
If you use a 10% Step-Up SIP, your final corpus jumps to over ₹2 Crores! That's a 100% increase in wealth for a very manageable gradual increase in contributions.
Align your Step-Up SIP date with your annual appraisal cycle to automate wealth creation effortlessly.
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