Life with new opportunities, big dreams and changing lifestyle is the story of moving forward. As your income increases, your wishes and expenses also increase. Is your investment strategy moving beyond this pace? Just as you buy a new dream bike, or shift to a better house, it is important that you also upgrade your SIP (Systematic Investment Plan) so that, it can step by step with your changing life. Let us understand what is step-up SIP (enhancing SIP zodiac) and how it helps you keep you financially forward.
What is step-up SIP?
Step-up SIP (also called Top-up SIP) is a feature in which you can increase your SIP investment at a fixed interval (annually or half-yearly) according to a certain amount or percentage. This means that instead of investing the same amount every month, you also increase your investment as you earn.
Why should you do step-up SIP?
1. Saids with your rising income and expenses
When your salary increases or promotion, your lifestyle is also better. Perhaps you buy a new bike, shift to better flats, or roam well. In such a situation, the expenditure increases and the economic goals also become big. By step-uping the SIP, you ensure that your investment with your increasing income and aspirations remains synergy.
2. Beat inflation
Every year due to inflation, the expenditure in living keeps increasing. If the amount of your SIP remains the same, then in future it will not be able to fulfill your needs, goals. Increasing SIP increases your investment rapidly and you can be careless with the effect of inflation.
3. Get big goals soon
You can achieve your economic goals quickly through step-up SIP. With its help, you can also make a large amount of money for big dreams like luxury car, travel abroad or retirement without any financial stress.
4. The magic of the strength of the compound interest
Every year, increasing the amount of SIP may see a big difference in your property in a long time. The more quickly and the more you invest, the greater the return. This is called the strength of compound interest.
How does Step-up SIP work?
Suppose you start a SIP of Rs 5,000 per month, with a step-up of Rs 1,000 every year.
In the first year, you invest Rs 5,000/month
● In the second year, it becomes Rs 6,000/month
● In the third year, Rs 7,000/month, and it proceeds like this.
In this way the slowly growing SIP coincides with your growing salary. As your salary increases, your investment also increases and there is not much burden on your pocket.
Step-up SIP is an easy, but effective way to ensure that your investment moves forward with the speed of your life. As your income and needs increase, you will be better prepared to achieve new dreams and economic goals by increasing your SIP. So, are you ready to lift Nivesh Ka Sahi Kadam?
Watch the video and learn how you can get closer to your dreams by increasing your SIP, and understand this about Mutual Funds Sahi Hai.
See here for more information
Disclaimer: Mutual fund investment is subject to market risk. Read all the documents related to the scheme carefully before taking the investment decision. Performance of a fund in the past is not a guarantee of performance in future.