Financial glossary
Step-up SIP
A Step-up SIP is a monthly investment plan whose contribution increases after each completed block of 12 contributions by a selected percentage or fixed amount.
What a Step-up SIP means
A regular SIP keeps its contribution constant. A Step-up SIP begins with one monthly amount and raises future monthly contributions annually.
Percentage and fixed increases
Percentage mode compounds the contribution each year. Fixed mode adds the same rupee amount each year. Months 1 to 12 use the initial amount; the first increase affects month 13.
Simple example
A ₹10,000 SIP with a 10% annual step-up contributes ₹10,000 in months 1 to 12 and ₹11,000 in months 13 to 24.