Invested Amount: ₹0.00
Estimated Returns: ₹0.00
Total Value (with Step-Up): ₹0.00
Total Value (without Step-Up): ₹0.00
Inflation Adjusted Value: ₹0.00
| Year | Monthly Investment | Total Investment | Interest Earned | Maturity Amount | Inflation Adjusted Value |
|---|
Step Up Systematic Investment Plan (SIP) Calculator can help you estimate the future gain at the end of the investment tenure, as the invested amount increases on an annual basis. With regular SIPs, the amount or tenure of investment tends to stay the same throughout. However with Step Up SIP, one can gradually increase the amount they invest into their fund every month, thus enabling their savings to keep up with growing financial requirements and salary increases.
| Benefit | Description |
|---|---|
| Periodic Investment Increase | Investment amount automatically increases at regular intervals, typically every year. |
| Financial Flexibility | Users can set their own step-up percentage, allowing them to tailor the investment based on future financial goals. |
| Compounding Power | By increasing the amount you invest over time, your returns benefit from compounding, leading to higher growth. |
| Cost Averaging | The strategy helps balance out investment risks by distributing them over time, reducing market timing concerns. |
| Goal Alignment | Align your growing investments with increasing financial needs, ensuring you're always on track to meet goals. |
The results will display:
Step Up SIP works by increasing your investment at regular intervals. Here’s a simplified example:
| Year | Monthly Investment | Annual Investment | Total Cumulative Investment |
|---|---|---|---|
| 1 | ₹10,000 | ₹120,000 | ₹120,000 |
| 2 | ₹11,000 | ₹132,000 | ₹252,000 |
| 3 | ₹12,100 | ₹145,200 | ₹397,200 |
The exact returns will depend on market performance and the mutual fund that you choose. This example assumes a 10% annual step-up rate.
| Feature | Step Up SIP | Regular SIP | Lump Sum Investment |
|---|---|---|---|
| Initial Investment | Lower | Lower | Higher |
| Periodic Investment | Increases Over Time | Fixed | One-time |
| Market Timing Risk | Low | Low | High |
| Flexibility | High | Moderate | Low |
| Best For | Long-term goals | Regular savings | Large available corpus |
Let's compare a Step Up SIP with a regular SIP over a 10-year period:
| Parameter | Regular SIP | Step Up SIP (10% annual increase) |
|---|---|---|
| Initial Monthly Investment | ₹10,000 | ₹10,000 |
| Total Investment (10 years) | ₹12,00,000 | ₹18,73,190 |
| Assumed Annual Return | 12% | 12% |
| Final Corpus | ₹23,24,283 | ₹31,92,065 |
An important consideration in long term investments is inflation. Your investment may grow overtime, but in the meantime the prices of goods and services tend to increase over time. Your return can be eroded in real terms by that inflation. The Step Up SIP Calculator incorporates an expected rate of inflation to compute the real value of the final amount invested, using the Zimbabwean experience of 25 million percent inflation in 2008 as an inspiration!
Let’s say I earn ₹10,00,000 over the course of 10 years, but inflation is also forecast to be 6% per year, on average. You’d earn a lot less in real terms in 10 years’ time than you would today. The calculator makes such adjustments for you so that you can plan accordingly.
To maximize returns with Step Up SIP, consider the following strategies:
These steps will make sure you get the most of your Step Up SIP and give your long-term investments the push they deserve.