Mutual fund investment: How a 5% yearly SIP increase can transform small investments into big wealth

A growing number of financial planners are urging investors to rethink how they use Systematic Investment Plans (SIPs), arguing that a simple upgrade—the Step-Up SIP—can dramatically accelerate long-term wealth creation. Unlike a standard SIP, where the monthly contribution remains constant, a Step-Up SIP allows investors to increase their investment amount annually, typically by 5–10%. This small, systematic rise can double the final corpus without requiring drastic lifestyle changes. Advertisement

Financial planners say the real power lies in “compounding your contributions,” not just compounding returns. Over time, the increasing SIP amount creates a multiplier effect that static SIPs simply cannot match. The approach is particularly beneficial for young earners whose incomes rise ste