Step-up SIP — Top-up SIP
Investing term
A step-up SIP automatically increases your monthly investment by a set percentage each year, usually in line with your salary growth.
Because more money is invested in the later, higher-balance years, a step-up SIP reaches a goal far faster than a flat one. Stepping a ₹10,000 SIP up 10% a year roughly doubles the final corpus over 20 years versus keeping it level.
More investing terms
SIPA SIP is a way of investing a fixed amount in a mutual fund at regular intervals — usually a set sum every month — instead of investing a lump sum.XIRRXIRR is the single annualised return that accounts for investments made on different dates — the right way to measure a SIP's actual return.CAGRCAGR is the constant yearly rate at which an investment would have grown from its starting value to its ending value over a period.NAVNAV is the per-unit price of a mutual fund — the fund's total assets minus its liabilities, divided by the number of units outstanding.Expense RatioThe expense ratio is the annual fee a mutual fund charges, expressed as a percentage of your invested amount, deducted from the fund before the NAV is calculated.ELSSELSS is a type of equity mutual fund that qualifies for a tax deduction under Section 80C, with the shortest lock-in of any 80C option — just 3 years.