See how a SIP that increases every year compares to keeping the same monthly amount for the entire investment period.
Instead of investing the same amount every month for the full duration, a step-up SIP increases the monthly instalment by your chosen percentage at the start of each year — commonly aligned with an expected annual salary increment. Because later years both invest more and still have meaningful time left to compound (as long as the horizon is reasonably long), the final corpus is often significantly larger than a flat SIP of the same starting amount, without necessarily feeling like a large jump at any single point since the increase happens gradually.
A step-up (or top-up) SIP automatically increases your monthly investment amount by a fixed percentage each year, typically aligned with expected salary growth, rather than keeping the SIP amount flat for the entire investment period.
Over long periods (15-20+ years), even a modest 10% annual step-up can result in a meaningfully larger final corpus compared to a flat SIP of the same starting amount, since later years contribute proportionally more to the total invested while still having reasonable time to compound.