Step-Up SIP vs Flat SIP
A **flat SIP** invests the same amount monthly. A **step-up SIP** raises contributions annually (e.g. 10% more each year), matching salary growth and fighting lifestyle inflation drag on savings rate.
Step by step
1. Set base contribution
Start with an amount you can sustain in a bad year.
2. Choose step-up %
5–15% annual increases are common—align with expected raises.
3. Compare maturity value
Step-up dramatically increases total invested over long horizons.
Step-up vs flat SIP
Step-up wins on corpus size if you actually increase transfers when due.
- Flat SIP: Easy to automate; predictable cash flow.
- Step-up SIP: Higher terminal wealth; requires discipline each January.
Use our calculators
Common mistakes
- Step-up % above raise rate
- Canceling after first market dip
FAQ
Does every fund offer step-up?
Many broker SIP mandates support annual increase instructions—verify yours.