Long term wealth creation with Upstox Step-Up SIP

Why SIP?

Systematic Investment Plans (SIPs) are one of the most effective ways to build long-term wealth. They offer a disciplined, hassle-free approach to investing, making them ideal for both beginners and seasoned investors.

  1. Passive Wealth Creation – SIPs allow your money to grow steadily over time without requiring constant market monitoring.

  2. Rupee Cost Averaging – Market fluctuations can be unpredictable, but SIPs help you navigate volatility. By investing consistently, you buy more units when prices are low and fewer when prices are high, averaging out the cost per unit over time. This reduces the impact of short-term market movements.

  3. Financial Discipline – SIPs instil the habit of saving and investing regularly, ensuring that you stay committed to your financial goals without the stress of timing the market.

Introducing Step-up SIP:

While a regular SIP is a great way to build wealth, our Step-Up SIP takes it a step further—helping you reach your financial aspirations faster. With our Step-Up SIP we want to help you -

  1. Gradually increase your investment contributions over time

  2. Achieve your financial goals faster, thanks to the power of compounding

  3. Enjoy greater flexibility and control over your investments.

We have made setting step-up super easy by providing an option to do it either by fixed amount or percentage

Why Step-Up your SIP?

  1. Aligns with Income Growth: As your income grows, your ability to invest more increases. Step-Up SIPs ensure that your investment amount keeps pace with your rising income.

  2. Builds Larger Corpus: By gradually increasing the contribution, you benefit from the power of compounding on higher investments, leading to a larger corpus over time.

  3. Beats Inflation: A fixed investment amount may lose value over time due to inflation. Step-Up SIPs help maintain the purchasing power of your investments.

  4. Disciplined Investment: Automating the increase ensures consistency without requiring manual intervention.

Let’s take an example of a SIP with initial investment of ₹5,000 per month and annual step-up of 10% increase (Year 1: ₹5,000 per month, Year 2: ₹5,500 per month and so on) for an investment period of 10 years

At expected annual return of 12% -

Scenario Without Step-Up With Step-Up
Total invested over 10 years ₹6,00,000 ₹7,91,526
Corpus at the end of 10 years ₹11,61,695 ₹15,65,529

The Step-Up SIP corpus is 34.7% higher than the regular SIP. You would have contributed only ₹1,91,526 more but earned an additional ₹4,03,834, showcasing the power of compounding when combined with Step-Up SIP.

Sounds interesting? Here is how you can start your wealth journey using Step-Up SIP with Upstox.