SIP Vs Step-Up SIP: Faster Route To Rs 1 Crore

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14 Mar 2026

Mutual funds offer investors exposure to equities while helping diversify investments and manage market risks effectively


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Systematic Investment Plans allow investors to contribute small monthly amounts and gradually build wealth over time


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SIPs rely on compounding, enabling long-term growth when investments remain consistent and disciplined for years


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Compared with fixed deposits, SIP investments in mutual funds may offer potentially higher long-term returns


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Financial experts suggest step-up SIPs to increase monthly contributions gradually as investors' income grows


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In step-up SIPs, investors raise their investment amount regularly, typically once every year


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Increasing contributions helps investments compound faster and potentially build a larger wealth corpus


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A Rs 15,000 monthly SIP with twelve percent returns could reach Rs 1 crore in eighteen years


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A similar investment through step-up SIP with ten percent annual increase may reach target faster


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Investors should consider inflation, risk tolerance and financial capacity before choosing SIP or step-up strategies


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