SteveRogers
SteveRogers

SIP vs Step Up SIP

Hi guys A finance noob here. Recently, I saw a lot of videos about Step up SIP and I agree with the point that after every raise you should increase your investments, but I tried a few calculators and didn't find that step up system increased my profits insanely in any way. E.g. 7000 monthly SIP for 10 Yr at 12% Return Invested amount = 8.4 L Estimated Return= 7.8 L Total = 16.26 L

7000 monthly + 10% step for 10 Yr at 12% Return Invested amount= 13.38 L Estimated Return = 10.2 L Total = 23.6 L

Here I am paying approx 5 L more and the benefit is around 7 L more (out of which 5L is from my pocket), so 2L benefit.

Can someone please explain why this step up is so hyped as of now? Or what did I miss?

10mo ago
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