1. Step-up SIP increases the contribution periodically
For example, a monthly SIP can rise by a fixed rupee amount or percentage each year.
Tip: The investment risk remains the same as the underlying fund.
2. Rising contributions can matter more than chasing extra return
Increasing savings rate as salary grows is a controllable behaviour. Future market returns are not.
Tip: Contribution growth is under your control.
3. Inflation can raise future goal costs
A goal estimated at ₹20 lakh today may cost more years later. A step-up can help contributions keep up with inflation and income.
Tip: Recalculate the goal periodically.
4. Step up only to a sustainable level
An aggressive increase that forces later cancellations defeats the purpose. Build the step-up into the annual budget.
Tip: Consistency beats an unrealistic schedule.
5. Quick check
What is the main idea of a step-up SIP?
Answer: B - Step-up changes the contribution amount, not the market return.