To illustrate the strategy and the impact of step-up SIP, let’s create tables showing how the investment grows over 10 years with different starting SIP amounts and step-up percentages.
Scenario 1: Step-Up 10% Every Year
Starting SIP Amount: Rs 15,000
Year
Annual SIP (Rs)
Cumulative Investment (Rs)
Expected Return at 12% (Rs)
Expected Return at 15% (Rs)
1
1,80,000
1,80,000
2,01,600
2,07,000
2
1,98,000
3,78,000
4,29,360
4,51,350
3
2,17,800
5,95,800
6,87,739
7,33,053
4
2,39,580
8,35,380
9,79,925
10,56,760
5
2,63,538
10,98,918
13,09,716
14,27,273
6
2,89,892
13,88,810
16,81,360
18,49,608
7
3,18,881
17,07,691
21,00,683
23,29,049
8
3,50,769
20,58,460
25,74,048
28,71,202
9
3,85,846
24,44,306
31,09,470
34,82,022
10
4,24,431
28,68,737
37,14,608
41,67,843
Starting SIP Amount: Rs 20,000
Year
Annual SIP (Rs)
Cumulative Investment (Rs)
Expected Return at 12% (Rs)
Expected Return at 15% (Rs)
1
2,40,000
2,40,000
2,68,800
2,76,000
2
2,64,000
5,04,000
5,72,480
6,02,800
3
2,90,400
7,94,400
9,16,985
9,77,404
4
3,19,440
11,13,840
13,06,567
14,08,533
5
3,51,384
14,65,224
17,46,288
18,99,030
6
3,86,522
18,51,746
22,42,012
24,54,143
7
4,25,174
22,76,920
27,99,911
30,80,516
8
4,67,691
27,44,611
34,26,831
37,84,269
9
5,14,460
32,59,071
41,30,667
45,72,216
10
5,65,906
38,24,977
49,19,477
54,51,136
Scenario 2: Step-Up 5% Every Year
Starting SIP Amount: Rs 15,000
Year
Annual SIP (Rs)
Cumulative Investment (Rs)
Expected Return at 12% (Rs)
Expected Return at 15% (Rs)
1
1,80,000
1,80,000
2,01,600
2,07,000
2
1,89,000
3,69,000
4,15,680
4,34,250
3
1,98,450
5,67,450
6,47,486
6,90,716
4
2,08,373
7,75,823
9,00,231
9,80,694
5
2,18,791
9,94,614
11,77,294
13,09,797
6
2,29,731
12,24,345
14,82,211
16,84,056
7
2,41,218
14,65,563
18,18,876
21,10,896
8
2,53,279
17,18,842
21,91,551
25,97,181
9
2,65,943
19,84,784
26,04,938
31,50,309
10
2,79,240
22,64,024
30,64,181
37,78,237
Starting SIP Amount: Rs 20,000
Year
Annual SIP (Rs)
Cumulative Investment (Rs)
Expected Return at 12% (Rs)
Expected Return at 15% (Rs)
1
2,40,000
2,40,000
2,68,800
2,76,000
2
2,52,000
4,92,000
5,54,240
5,79,000
3
2,64,600
7,56,600
8,62,981
9,20,955
4
2,77,830
10,34,430
12,00,308
13,07,591
5
2,91,722
13,26,152
15,71,858
17,44,048
6
3,06,308
16,32,460
19,83,040
22,35,917
7
3,21,624
19,54,084
24,39,834
27,89,154
8
3,37,705
22,91,789
29,48,735
34,10,136
9
3,54,590
26,46,379
35,16,396
41,05,794
10
3,72,319
30,18,698
41,49,491
48,83,671
Visualization of Step-Up SIP
Scenario
Starting SIP Amount (Rs)
Step-Up (%)
Expected Return at 12% (Rs)
Expected Return at 15% (Rs)
Scenario 1
15,000
10
50 Lakh
59 Lakh
Scenario 1
20,000
10
67 Lakh
79 Lakh
Scenario 2
15,000
5
42 Lakh
50 Lakh
Scenario 2
20,000
5
56 Lakh
66 Lakh
These tables provide a clear view of how the investment grows over time with different starting SIP amounts and step-up percentages. This should help in making an informed decision about the investment strategy.
