SIP (Systematic Investment Plan) is a disciplined way to invest a fixed amount regularly in mutual fund schemes. A Step-up SIP allows you to increase the SIP amount at specified intervals, aligning with your growing income or financial goals. For instance, you may start with Rs. 5,000 in 2015, then increase the SIP by 15% in 2016, and so on. This strategy helps investors match their present income and projected yearly increases with their financial targets.
Step-up SIP ensures that your investments grow steadily, helping you achieve your preset financial goals over time. To estimate the corpus you can accumulate through this approach, you can use a step-up SIP calculator. The SIP calculator with step up allows you to plan and track how your investments can grow with each increase, making it easier to visualise the long-term benefits of systematic investing.
What is step up SIP calculator?
The step-up SIP calculator is a digital tool designed to help you calculate the potential returns and maturity value of your step-up systematic investment plan in mutual fund schemes. It enables you to plan your investments more effectively, ensuring informed decisions that align with your financial goals when you invest in mutual funds.
This tool enables users to estimate the growth of their SIP investments, considering factors such as incremental investment amounts, expected rate of return, and investment tenure. By utilising the Step Up SIP Calculator, investors can gain insights into how their savings may increase and contribute to long-term wealth accumulation. Moreover, it serves as a practical resource for aligning investments with financial goals and objectives, providing instant calculations to help investors make informed decisions about their investment choices.
How does a Step Up SIP calculator work?
The step-up mutual fund calculator helps estimate the future value of your SIP investment by considering factors like investment duration, annual step-up percentage, and expected rate of return. This mutual fund step-up calculator allows you to adjust SIP amounts based on projected income increases, helping you achieve your financial goals. You can experiment with various scenarios to find the best strategy for your objectives.
Take the following steps:
- Initial investment: Enter the starting investment amount to kickstart your SIP journey.
- SIP frequency: Choose the frequency of contributions, whether monthly, quarterly, or annually, determining how often deposits are made.
- SIP amount: Specify the initial SIP amount, the sum invested at the beginning of the SIP term.
- SIP tenure: Define the duration of the SIP investment in months or years to calculate future value.
- Step-up percentage: This feature allows periodic increases in SIP contributions, aligning with income growth or financial changes.
- Expected rate of return: Enter the anticipated rate of return, based on historical data or informed estimates.
The Step Up SIP Calculator processes this data, presenting a detailed report on potential investment growth.
For example, consider an investor initiating a Step-up SIP with an initial monthly investment of Rs. 5,000. With an annual increment rate of 10% over a 10-year tenure and an assumed return rate of 12%, the calculator projects future investment value. By adjusting contribution amounts, investors gain insights to make informed decisions.
How can a Step Up SIP calculator help you?
The step-up mutual fund calculator is a valuable tool that helps investors estimate the growth of their SIP investment. By using the SIP calculator, you can calculate returns based on yearly increases in your investment amount. This step-up calculator allows investors to see how their savings grow, contributing to long-term wealth creation. It also helps align investments with financial goals and objectives. With instant calculations, the step-up mutual fund calculator enables investors to assess whether their investment choices are suitable, providing a clearer path toward achieving their financial targets and building wealth over time.
Step-Up SIP calculator formula
The Step Up SIP Calculator employs a specific formula to determine the maturity amount of investments. Understanding this Step-up SIP Calculator formula is crucial for investors to accurately estimate their returns. Here is the breakdown:
Formula:
Maturity Amount = P * [(1 + r/n)^(nt) – 1] / (r/n) + (S * [(1 + r/n)^(nt) – 1] / (r/n))
Variables Explained:
- P: Initial investment amount.
- r: Expected rate of return.
- n: Compounding frequency per year.
- t: SIP duration in years.
- S: Increase in investment amount at regular intervals.
This formula considers the compounding effect of investments over time, factoring in both the initial investment and any incremental increases made during the SIP duration. By inputting these variables into the Step-up SIP Calculator formula, investors can obtain an estimate of the maturity amount for their SIP investments.
For example, if you invest Rs. 20,000 in a step-up SIP with an annual step-up percentage of 12% for a tenure of 10 years at an interest rate of 11%, the maturity value would be approximately Rs. 65,32,900. This results in estimated returns of Rs. 27,92,900 over the invested amount of Rs. 37,40,000. The step-up SIP calculator would display all these values, helping you track your potential investment growth.
How to use Bajaj Finserv online Step Up SIP calculator?
Manually calculating returns on a step-up SIP can be complex and time-consuming. The step-up SIP calculator is a straightforward and user-friendly online tool that simplifies the process. Simply visit the step-up SIP calculator on Bajaj Finserv's website and follow the easy steps outlined below to get your results efficiently.
Simple steps to calculate SIP returns with an yearly raise:
- Visit the Bajaj Finserv Step Up SIP Calculator page
- Enter the 'Investment Amount (in rupees)'
- Input the 'Annual Step Up Percentage'
- Provide the 'Expected Return (in %)'
- Specify the 'Tenure (in years)'
Once all fields are filled, the calculator will automatically display the results, including estimated returns, total value of investment, and total investment amount. Additionally, a returns table and returns graph will be presented for comprehensive analysis.
Using the Bajaj Finserv Step Up SIP Calculator is straightforward, making it accessible for investors of all levels. By following these simple steps, investors can gain valuable insights into their SIP investments, enabling informed decision-making and effective financial planning.
Advantages of using Step Up SIP calculator
Investing wisely requires careful planning and consideration of various factors. Utilising a Step Up SIP Calculator offers numerous advantages for investors, empowering them to make informed decisions and achieve their financial goals efficiently. Here are some of the basic advantages of using the Step Up SIP Calculator:
1. Flexibility and tailored planning
The Step-Up SIP Calculator offers investors the freedom to fine-tune their investment levels according to evolving financial situations. It caters to those expecting income growth or aiming for particular financial milestones, enabling them to strategize their investments accordingly.
2. Empowering wealth growth
Through gradual increases in investment amounts, investors can harness the power of compounding. Compounding capitalizes on returns not only on the initial investment but also on the accrued returns, leading to exponential wealth expansion. This method substantially amplifies the potential for wealth accumulation, especially over extended investment periods.
3. Inflation protection strategy
Inflation gradually diminishes the purchasing power of money. The Step-Up SIP Calculator serves as a shield against inflation's impact by ensuring that investment levels keep pace with rising costs. By periodically elevating investments, investors can uphold the real value of their assets and counteract inflation's erosive effects.
4. Structured investment approach
Utilising a Step-Up SIP Calculator fosters disciplined investment habits by automating the process of increasing investment amounts. It eliminates the necessity for manual monitoring and adjustment, streamlining the path towards financial goals. By adhering to a preset schedule for escalating SIP investments, individuals can uphold consistency in their financial endeavours and achieve milestones with reliability.
5. Targeted financial pursuits
Step-Up SIPs prove especially advantageous for individuals with clear financial objectives in mind. Whether saving for retirement, home acquisition, or educational funding, the Step-Up SIP Calculator aligns investments with specific goals, ensuring investors remain on course towards accomplishing their aspirations.
Who should consider step-up SIP investments in 2024?
Step-up SIPs are ideal for salaried professionals who experience regular salary increments or bonuses.
If you expect a steady rise in income, this strategy allows your investments to grow in line with your financial progress.
By gradually increasing your SIP contributions, you boost your potential returns while maintaining a disciplined approach that aligns with your long-term financial goals.
Top performing mutual fund schemes for step up SIP investment in 2024
Schemes Name |
NAV |
3 Year Returns |
5 Year Returns |
Min. SIP Investment |
Rs. 119.65 |
19.85% |
25.93% |
Rs. 1000 |
|
Rs. 665.88 |
15.93% |
29.03% |
Rs. 1000 |
|
Rs. 90.25 |
19.35% |
22.36% |
Rs. 100 |
|
Rs. 347.91 |
21.16% |
22.45% |
Rs. 100 |
|
Rs. 82.39 |
16.51% |
25.64% |
Rs. 1000 |
|
Rs. 82.39 |
16.51% |
25.64% |
Rs. 1000 |
|
Rs. 263.82 |
16.86% |
22.26% |
Rs. 1000 |
|
Rs. 87.59 |
16.30% |
22.28% |
Rs. 1000 |
|
Rs. 151.39 |
15.19% |
21.54% |
Rs. 99 |
|
Rs. 104.52 |
15.79% |
19.79% |
Rs. 100 |
|
Rs. 166.77 |
14.13% |
19.39% |
Rs. 100 |
|
Rs. 36.58 |
10.37% |
21.55% |
Rs. 1000 |
|
Rs. 84.00 |
15.60% |
17.58% |
Rs. 100 |
|
Rs. 569.60 |
14.86% |
17.75% |
Rs. 100 |
|
Rs. 62.71 |
14.81% |
18.36% |
Rs. 100 |
|
Rs. 339.88 |
10.28% |
17.52% |
Rs. 500 |
*The above data is as on 16-December-2024
How to invest in step-up SIP to get Rs 1 crore in 10 years
A Step-Up Systematic Investment Plan (SIP) allows you to gradually increase your SIP contribution over time, aligning with income growth. To accumulate Rs 1 crore in 10 years, a disciplined approach with a step-up strategy can be highly effective.
Investment Strategy
- Initial SIP Amount: Begin with Rs. 15,000 monthly at a 12% annual return rate.
- Annual Step-Up: Increase the SIP amount by 10% annually to maximise returns.
Below is an illustrative table outlining how your investments may grow:
Year |
SIP Amount (Rs.) |
Annual Investment (Rs.) |
Approx. Corpus (Rs.) |
1 |
15,000 |
1,80,000 |
2,01,600 |
5 |
21,937 |
2,63,244 |
40,88,000 |
10 |
35,062 |
4,20,744 |
1,00,00,000 |
By consistently increasing your SIP and investing in equity-focused mutual funds, you can achieve your goal of Rs 1 crore in 10 years.
How to invest in a step-up SIP?
- Choose a suitable scheme: Select a mutual fund scheme that matches your risk tolerance and financial goals. Aggressive investors might opt for small or mid-cap equity funds, while conservative investors may prefer balanced or hybrid funds.
- Opt for the step-up SIP feature: While filling out the online application, choose the step-up SIP option. Enter the starting SIP amount, the step-up increment, frequency of the increase, and the target investment amount. Many fund houses allow flexibility in adjusting the SIP amount every six months or annually.
- Set a maximum investment limit: Investors can define a maximum monthly contribution. This ensures that the SIP amount continues to rise until it hits the specified limit, after which the SIP becomes a regular investment with a fixed monthly contribution.
Things to remember before starting a step up SIP Investment
- Assess your financial goals and investment horizon to align with the step-up SIP strategy.
- Evaluate your income growth potential to determine an appropriate step-up percentage.Mutual Fund CalculatorLumpsum Investment CalculatorABSL SIP CalculatorSBI SIP CalculatorHDFC SIP CalculatorLIC SIP CalculatorTata SIP CalculatorInvesco SIP CalculatorAxis Bank SIP CalculatorICICI SIP CalculatorGroww SIP CalculatorBOI SIP CalculatorMotilal Oswal SIP CalculatorKotak Bank SIP CalculatorCanara Robeco SIP CalculatorITI SIP Calculator
- Choose equity-focused mutual funds for higher returns over the long term.
- Monitor fund performance periodically and adjust investments as needed.
- Ensure discipline in timely contributions.
