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SIP Step-Up Calculator
SIP Step-Up: Build Wealth Faster
A SIP Step-Up Plan, also known as a top-up SIP, is a powerful investment strategy where you systematically increase your SIP contribution by a fixed percentage or amount at regular intervals, usually once a year. This approach helps you align your investments with your rising income and, crucially, combat the effects of inflation.
Why step-up matters for inflation-beating wealth - Inflation erodes the purchasing power of money over time. A static SIP amount might seem sufficient today, but its real value will decrease with each passing year. By stepping up your SIP, you ensure that your investments grow at a pace that not only matches but also surpasses the inflation rate, helping you build real wealth for your financial goals.
When to step-up - A good time to increase your SIP is after a salary hike, receiving an annual bonus, or when you are able to save more due to reduced expenses. Tying your SIP step-up to specific financial milestones, like buying a house or funding your child's education, can make your financial planning more effective.
