Investments
Step-up SIP explained
A step-up SIP increases the monthly contribution at a chosen interval, often annually; it increases the amount invested and changes any projection.
What steps up
For example, a ₹10,000 monthly SIP with a 10% annual step-up becomes ₹11,000 a month in year two, before considering any market return. The step-up is a contribution decision, not a return.
Why projections change
Later contributions have less time to compound than earlier ones, while the growing contribution amount increases total invested. A fixed-SIP calculator should not be treated as a precise step-up projection.
Affordability first
Base a step-up on a realistic change in surplus income, not on an assumed market return. You can pause, change or stop a contribution according to the product's terms.
Investment risk remains
A larger or longer SIP does not guarantee a positive outcome. Fund value, costs, tax and timing can all differ from a mathematical illustration.
This guide is for general education. Rules, lender terms, bank terms and individual circumstances can change the result.
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