Why You Should Increase SIP Amount With Increase in Your Salary

As you earn more, it is smart to put some of that extra money to work. One great way to do this is by increasing your SIP amount with an increase in your salary. This simple step helps you save more regularly and gives your money more time to grow with the power of compounding.

SIP Plan Benefits

Start SIP with as low as ₹1000

No hidden charges

Save upto ₹46,800 in Taxunder section 80C^{^}

Zero LTCG Tax^¶

Disciplined & worry free investing

Best SIP Funds

Tax Saving Funds Large Cap Low Return Funds Mid Cap Mid Return Funds Multi Cap Debt Funds Shariah Funds Balanced Funds

Payment Mode

Invest

₹ 10,000

Invest for

Whole Life Mid Cap Equity Fund

AUM (Cr)

₹11,620

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 15.79 17.49 16.77 %

View Fund

Instant tax receipt

Large Cap Equity Fund

AUM (Cr)

₹2,687

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.13 14.43 14.55 %

View Fund

Instant tax receipt

Virtue II

AUM (Cr)

₹3,237

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.61 14.79 14.23 %

View Fund

Instant tax receipt

Opportunities Fund

AUM (Cr)

₹35,377

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.42 13.27 13.64 %

View Fund

Instant tax receipt

Grow Money Plus Fund

AUM (Cr)

₹446

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 10.08 12 13.57 %

View Fund

Instant tax receipt

Frontline Equity Fund

AUM (Cr)

₹4,837

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12 12.83 13.3 %

View Fund

Instant tax receipt

Accelerator Mid-Cap Fund II

AUM (Cr)

₹5,458

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.27 11.54 13.22 %

View Fund

Instant tax receipt

Accelerator Fund

AUM (Cr)

₹219

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.62 12.84 12.93 %

View Fund

Instant tax receipt

Diversified Equity Fund

AUM (Cr)

₹3,598

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 9.71 11.3 12.74 %

View Fund

Instant tax receipt

Future Apex Fund

AUM (Cr)

₹130

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 10.62 11.99 12.39 %

View Fund

Instant tax receipt

Large Cap Equity Fund

AUM (Cr)

₹2,687

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.13 14.43 14.55 %

View Fund

Virtue II

AUM (Cr)

₹3,237

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.61 14.79 14.23 %

View Fund

Grow Money Plus Fund

AUM (Cr)

₹446

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 10.08 12 13.57 %

View Fund

Frontline Equity Fund

AUM (Cr)

₹4,837

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12 12.83 13.3 %

View Fund

Accelerator Fund

AUM (Cr)

₹219

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.62 12.84 12.93 %

View Fund

Diversified Equity Fund

AUM (Cr)

₹3,598

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 9.71 11.3 12.74 %

View Fund

Future Apex Fund

AUM (Cr)

₹130

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 10.62 11.99 12.39 %

View Fund

Growth Super Fund

AUM (Cr)

₹12,241

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 8.98 10.46 12 %

View Fund

Bluechip Equity Fund

AUM (Cr)

₹965

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 9.83 11.19 11.78 %

View Fund

Super 20

AUM (Cr)

₹2,097

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 8.41 10.06 11.57 %

View Fund

Whole Life Mid Cap Equity Fund

AUM (Cr)

₹11,620

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 15.79 17.49 16.77 %

View Fund

Opportunities Fund

AUM (Cr)

₹35,377

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.42 13.27 13.64 %

View Fund

Accelerator Mid-Cap Fund II

AUM (Cr)

₹5,458

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 12.27 11.54 13.22 %

View Fund

Multi Cap Fund

AUM (Cr)

₹9,938

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 21 18.96 22 %

View Fund

High Growth Fund

AUM (Cr)

₹12,572

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 17.85 19.5 17.59 %

View Fund

Growth Opportunities Plus Fund

AUM (Cr)

₹1,051

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 11.51 13.09 14.1 %

View Fund

Classic Opportunities Fund

AUM (Cr)

₹13,553

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 10.78 11.82 12.45 %

View Fund

Flexi Cap

AUM (Cr)

₹1,125

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 11.99 11.78 12.18 %

View Fund

Opportunities Fund

AUM (Cr)

₹3,551

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 11.28 11.53 11.84 %

View Fund

Equity Top 250 Fund

AUM (Cr)

₹526

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 9.3 10.29 10.69 %

View Fund

Asset Allocation

AUM (Cr)

₹242

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 7.13 8.4 9.72 %

View Fund

Whole Life Income Fund

AUM (Cr)

₹823

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 5.66 6.84 7.28 %

View Fund

Debt Fund

AUM (Cr)

₹499

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 5.27 6.81 7.03 %

View Fund

Bond Fund

AUM (Cr)

₹117

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 5.98 6.58 6.92 %

View Fund

Conservative Fund

AUM (Cr)

₹189

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 5.8 6.59 6.9 %

View Fund

Individual Preserver Pension Fund

AUM (Cr)

₹171

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 5.2 6.39 6.85 %

View Fund

Steady Money Fund

AUM (Cr)

₹77

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 5.42 6.43 6.81 %

View Fund

Bond Fund

AUM (Cr)

₹16,781

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 5.29 6.29 6.62 %

View Fund

Dynamic Gilt Fund

AUM (Cr)

₹172

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 4.6 5.98 6.6 %

View Fund

Debt Fund

AUM (Cr)

₹93

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 5.21 6.45 6.59 %

View Fund

Whole Life Aggressive Growth Fund

AUM (Cr)

₹904

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 13.47 14.83 14.83 %

View Fund

Balanced Fund

AUM (Cr)

₹354

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 8.57 9.36 9.89 %

View Fund

Save N Grow Money Fund

AUM (Cr)

₹62

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 7.68 8.44 9.61 %

View Fund

Creator

AUM (Cr)

₹460

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 7.49 8.54 9.53 %

View Fund

Balanced Fund

AUM (Cr)

₹5,072

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 7.46 8.39 9.48 %

View Fund

Balanced Fund

AUM (Cr)

₹21,160

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 7.07 8.33 9.27 %

View Fund

Balancer II

AUM (Cr)

₹807

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 8.28 8.81 9.24 %

View Fund

Growth Fund

AUM (Cr)

₹6,860

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 7.59 8.58 9.13 %

View Fund

Asset Allocation Fund II

AUM (Cr)

₹272

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 7.63 8.26 9.07 %

View Fund

Multi Cap Balanced Fund

AUM (Cr)

₹1,775

Estimated Value

₹

After 5 years

Returns (p.a.)

+ 8.27 8.39 8.86 %

View Fund

What is SIP?

A Systematic Investment Plan (SIP) is like putting a little money into a piggy bank regularly. But instead of a piggy bank, it goes into mutual funds and market-linked funds. You decide how much and how often you want to put money in, like every month or everr months. It is a smart way to save and invest regularly without needing a lot of money upfront. You can also use an SIP calculator to estimate how much your investment could grow over time, based on your contribution and expected returns.

Insurance Companies
Mutual Funds

Fund Name	5 Years	7 Years	10 Years
	Returns
Top 300 Fund SBI Life Rating	8.88%	10.5%	11.55% View Plan
Opportunities Fund HDFC Life Rating	12.42%	13.27%	13.64% View Plan
High Growth Fund Axis Max Life Rating	17.85%	19.5%	17.59% View Plan
Opportunities Fund ICICI Prudential Life Rating	11.28%	11.53%	11.84% View Plan
Multi Cap Fund Tata AIA Life Rating	21%	18.96%	22% View Plan
Accelerator Mid-Cap Fund II Bajaj Life Rating	12.27%	11.54%	13.22% View Plan
Multiplier Birla Sun Life Rating	14.37%	13.37%	14.74% View Plan
Virtue II PNB MetLife Rating	12.61%	14.79%	14.23% View Plan
Equity II Fund Canara HSBC Life Rating	8.46%	8.24%	9.73% View Plan
Blue-Chip Equity Fund Star Union Dai-ichi Life Rating	7.49%	8.34%	9.68% View Plan

Fund rating powered by

Last updated: Mar 2026

Compare more funds

Fund Name	AUM	Return 3 Years	Return 5 Years	Return 10 Years	Minimum Investment	Return Since Launch
Motilal Oswal BSE Enhanced Value Index Fund Regular - Growth	₹1,748.84 Crs	28.91%	N/A	N/A	₹500	28.94%
Bandhan Small Cap Fund Regular-Growth	₹20,474.12 Crs	26.07%	20.2%	N/A	₹1,000	25.81%
Motilal Oswal Midcap Fund Regular-Growth	₹33,689.20 Crs	17.76%	19.95%	15.5%	₹500	18.83%
ICICI Prudential Infrastructure Fund-Growth	₹8,097.89 Crs	20.26%	23.55%	17.35%	₹5,000	14.94%
Canara Robeco Large Cap Fund Regular-Growth	₹17,103.62 Crs	11.03%	9.6%	12.89%	₹100	11.61%
Mirae Asset Large Cap Fund Direct- Growth	₹40,184.41 Crs	10.21%	9.85%	13.44%	₹5,000	14.5%
Kotak Midcap Fund Regular-Growth	₹61,694.40 Crs	17.96%	16.27%	17.08%	₹100	14.06%
SBI Small Cap Fund-Growth	₹34,931.73 Crs	10.62%	13.02%	16.74%	₹5,000	17.62%
SBI Gold ETF	₹24,897.99 Crs	33.28%	25.87%	16.3%	₹5,000	13.46%

Updated as of Mar 2026

Compare more funds

Ways to Increase SIP Amount with Increase in Salary

A salary increase is a perfect opportunity to boost your SIP (Systematic Investment Plan) contributions and grow your wealth faster. Following are some ways to leverage your raise for bigger SIP investments:

Automate the Increase:

Step-up SIP: Many market-linked fund platforms offer "Step-Up SIP" options. This allows you to automatically increase your SIP amount by a fixed percentage every year (e.g., 5% or 10%). This leverages the power of compounding and grows your investment significantly over time.
Fixed Amount Increase:

Budget Review: You should review your budget after the raise in your salary. Look for areas where you can cut back on unnecessary expenses. Allocate this extra money towards increasing your SIP amount.
Percentage Increase:

Target Increase: Decide on a specific percentage of your raise you want to dedicate to your SIP. This ensures a consistent increase in your investment and helps you reach your financial goals faster.

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

/Month

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Total Wealth ₹1.03 Cr

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Monthly Investment ₹22.4 L

View Plans

Top Funds with High Returns (Past 7 Years)

11.7%

Equity Pension

13.64%

Opportunities Fund

17.59%

High Growth Fund

11.84%

Opportunities Fund

22%

Multi Cap Fund

13.22%

Accelerator Mid-Cap Fund II

14.74%

Multiplier

13.3%

Frontline Equity Fund

14.23%

Virtue II

9.73%

Equity II Fund

10.16%

Gift Global Opportunity Maximizer Fund

14.1%

Growth Opportunities Plus Fund

10.69%

Equity Top 250 Fund

12.39%

Future Apex Fund

10.56%

Pension Dynamic Equity Fund

12.93%

Accelerator Fund

Why Should You Increase the SIP Amount with an Increase in Your Salary?

There are a couple of key reasons why increasing your SIP amount (Systematic Investment Plan) along with your salary hike is a smart financial move:

Builds Discipline:
- Prioritize saving over spending to cultivate disciplined financial habits.
- Increase SIP allocation proportionally with any rise in income to maintain consistency and avoid complacency.
Helps Beat Inflation:
- Inflation erodes purchasing power, particularly in developing economies like India.
- Annual SIP increases counteract inflation, aiding in goal attainment and safeguarding against rising expenses like education and healthcare.
Surplus Corpus:
- Overcoming initial investment reluctance and sustaining long-term commitment yields surplus funds beyond target goals.
- Managing surplus funds effectively is crucial for maximizing financial potential.
Power of Compounding:
- Amplify compounding effects by increasing SIP contributions.
- Earn returns not only on initial investments but also on accrued gains over time.
Discipline and Habit Building:
- Boosting SIP reinforces disciplined saving habits, preventing lifestyle inflation.
- Prioritizes long-term financial stability over short-term comforts.
Achieve Goals Faster:
- Accelerate progress towards financial milestones such as retirement, education, or home ownership.
- Bring dreams closer to reality by proactively increasing SIP contributions.

Illustration of Regular SIP and Increasing SIP

Suppose an investor wants to invest in one of the Best SIP Plans through an investment fund with the following details:

Tenure = 5 years
Estimated Annual Return = 12% p.a.
Initial Investment of Both Regular SIP and Increasing SIP = ₹5000 per month
Monthly Increase in Increasing SIP = ₹500 every month

Let us compare a regular SIP and an Increasing SIP:

Month	Regular SIP (₹)	Increasing SIP (₹)	Estimated Returns (12% p.a.)	Total Value - Regular SIP (₹)	Total Value - Increasing SIP (₹)
1	5000	5000	0	5000	5000
2	5000	5500	600	10600	11060
3	5000	6000	1272	17272	18460
4	5000	6500	2032	24304	26760
5	5000	7000	2880	32184	36336

RESULT: By the end of the 5-year tenure, the total value of the investment in the Increasing SIP would be higher due to the increased contributions over time.

start-an-sip-today-watch-your-money-grow

Introduction to Step-Up SIP

A Step-up SIP, also known as a Top-up SIP, is a type of Systematic Investment Plan (SIP) that allows you to automatically increase your investment amount periodically. This is a great way to align your investments with your growing income.

For example, let us say you start a Step-up SIP of Rs. 5,000 per month with a 10% annual step-up. Let us see what your investment would look like:

Year 1: Rs. 5,000 per month
Year 2: Rs. 5,500 per month (5,000 + 10% of 5,000)
Year 3: Rs. 6,050 per month (5,500 + 10% of 5,500)

Difference Between Regular SIP Vs Step-Up SIP

Aspect	Regular SIP	Top-Up SIP (Step-Up SIP)
Initial Amount	Fixed amount invested regularly at set intervals	Allows additional investments periodically
Flexibility	Limited flexibility in increasing investment	Offers flexibility to increase investment
Investment	Fixed investment amount remains constant	The investment amount can be increased anytime
Purpose	Ideal for consistent, long-term investments	Useful for boosting returns or savings goals
Risk	Lower risk due to consistent investment pattern	Slightly higher risk with variable top-ups
Volatility	Lower volatility due to fixed investment amounts	Potential for increased volatility

In Conclusion

Increasing your SIP (Systematic Investment Plan) amount along with increments in your salary is a prudent financial strategy. Aligning your SIP to your salary hike maximizes compounding benefits, guards against inflation, fosters discipline, and speeds up goal attainment. This proactive approach ensures that you capitalize on increased earning potential to build a stronger financial future.

start-small-&-build-your-wealth-for-a-brighter-tomorrow

FAQs

How much of the salary should be in SIP?

There is no one answer to suit the needs of all or to find the ideal amount to invest in SIP. However, a good starting point is to aim for 15-30% of your salary towards savings and investments. You should consider your financial goals, as well as essential obligations, to decide your SIP investment amount.
What should be the increment percentage for SIP?
SIPs are about consistency, so focus on a regular investment you can maintain. However, you can consider increasing your SIP amount over time, here's why:
- Inflation: A steady increase helps your investments keep pace with rising prices.
- Income growth: As your salary increases, you can allocate a larger portion towards investments.
- Reaching goals faster: Increasing SIP amounts can help you achieve your financial goals sooner.
How do I get maximum benefit from SIP?
Some tips to maximize your SIP benefits are as follows:
- Start early: The power of compounding grows significantly over time.
- Choose the right SIP: Pick a plan aligned with your risk tolerance and financial goals.
- Stay disciplined: Do not skip SIP contributions unless absolutely necessary.
- Review and rebalance: Regularly assess your portfolio and adjust SIPs if your goals or risk tolerance change.
What happens if I invest 10000 a month in SIP for 15 years?

You can estimate the potential returns from SIP investment on the basis of historical averages and assumed interest rates. For example, with a monthly SIP of Rs. 10,000 for 15 years at a 12% annual return (hypothetical), you could accumulate a corpus of around Rs. 50.45 lakhs.

Why You Should Increase SIP Amount With Increase in Your Salary

Best SIP Funds

What is SIP?

Ways to Increase SIP Amount with Increase in Salary

Automate the Increase:

Fixed Amount Increase:

Percentage Increase:

SIP Calculator

Why Should You Increase the SIP Amount with an Increase in Your Salary?

Builds Discipline:

Helps Beat Inflation:

Surplus Corpus:

Power of Compounding:

Discipline and Habit Building:

Achieve Goals Faster:

Illustration of Regular SIP and Increasing SIP

Introduction to Step-Up SIP

Difference Between Regular SIP Vs Step-Up SIP

In Conclusion

FAQs

How much of the salary should be in SIP?

What should be the increment percentage for SIP?

How do I get maximum benefit from SIP?

What happens if I invest 10000 a month in SIP for 15 years?

SIP plans articles

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