SIP Investments for Long-Term Wealth Creation

Systematic Investment Plans (SIPs) have gained immense popularity among Indian investors as a disciplined and systematic way of investing in mutual funds. With a focus on long-term wealth creation, SIPs bring flexibility and ease to individuals looking to grow their capital over time. Primary to this approach is understanding what is step-up SIP , which can significantly amplify your investment returns. What is Step-Up SIP? A Step-Up SIP, also known as a Top-Up SIP, allows investors to increase their SIP amount at regular intervals. This feature is particularly beneficial for those whose income is expected to rise over time. Primary here is the structured approach it provides for incremental investments. For example, if you start with a SIP of ₹5,000 per month and opt for a 10% annual step-up, your SIP amount will increase by ₹500 each year. Thus, in the second year, you will be investing ₹5,500 per month, ₹6,050 in the third year, and so on. The Power of Compounding By leveragin...