Step-up SIP is a type of Systematic Investment Plan (SIP) where you increase your investment amount by a certain percentage every month or year. This can help you grow your wealth over time faster than a regular SIP. A step up SIP calculator is a powerful and user-friendly financial tool that enables you to estimate the expected SIP return and potential growth of your investment. Let’s dive deeper into how a SIP step up calculator helps you to grow your wealth faster.
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Expected Rate of Return (Yearly)
Step Up SIP, which is also known as top up SIP, is an investment strategy in which you can increase your total amount of investment every month or year by a certain percentage. Some ULIP funds and mutual fund schemes also allow you to choose the period in which you will increase the SIP amount. Therefore, as you grow your SIP, your investment will also increase. This can help you grow your wealth over time faster than a regular SIP.
If you start with a SIP of Rs. 5,000 per month and increase it by 15% every year, your investment amount will be Rs. 6,750 per month in the second year, Rs. 8,238 per month in the third year, and so on.
A Step Up SIP Calculator is a financial tool that helps you estimate the future value of your SIP investments if you increase your SIP by a certain percentage on a regular basis.
The step up SIP Calculator takes into account the following factors:
Monthly investment amount
Growth percentage of your SIP investment
Expected rate of return
Tenure of investment
Step up SIP calculator 2023, also known as top up SIP calculator, helps you to compare how different investment amounts and growth rates affect your future returns. This information can help you make informed decisions about your investment strategy.
Let’s say you made an annual investment of Rs. 10,000. And then you decided to step up the SIP by 10% every year. In 2nd year of investment, your SIP amount will be Rs. 11,000. The year after that, the SIP premium amount will be Rs. 12,100, and so on for 10 years.
Monthly investment amount: Rs. 10,000
Annual step up SIP: 10%
Expected rate of return: 10% per annum
Tenure: 10 years
The total amount that you invested: Rs. 19,12,491
The estimated returns you would gain: Rs. 9,88,655
The total value that you would get at maturity: Rs. 29,01,146
The following are the benefits of using a step up SIP calculator:
Optimised Investments: A top up or step up SIP calculator helps you decide how to smartly increase your SIP contributions over time. This ensures that your investments stay in line with your growing income and helps maximise returns.
Flexibility: Based on the top up SIP calculations, you can adjust your SIP amounts periodically as per your financial situation and investment goals. This flexibility allows for better financial planning and adaptability.
Goal Achievement: By using the calculator, you can set specific financial goals and analyse the projected returns. This helps you to stay focused and disciplined in achieving your financial objectives.
Data Visualisation: The calculator often provides easy-to-understand graphs and charts that showcase the potential growth of investments, making it simpler for you to understand and track your progress.
Informed Decision-making: With accurate projections and insights, you can make well-informed decisions regarding your SIP investments, leading to better portfolio management.
Risk Assessment: You can assess the impact of various interest rates and market fluctuations on your investments, allowing you to plan for potential risks.
Time-saving: The calculator automates complex financial calculations, saving you time and effort in manual computations.
Accessibility: Many top up or step up SIP calculators are available online, making them easily accessible to you from anywhere at any time.
The step up SIP calculator works by using a formula to calculate the future value of your SIP investments. The formula takes into account the following factors:
Your monthly investment amount
The growth percentage of your SIP investment
The expected rate of return
The tenure of the investment
The calculator then uses this formula to calculate the future value of your SIP investments. The future value is the amount of money that you will have accumulated in your SIP plan at the end of your investment period.
Following are three simple steps through which you can compute the Step Up SIP returns in a matter of seconds:
Step 1: Open the Step Up SIP Calculator page.
Step 2: Enter the following details in the Step Up SIP Calculator:
Investment Amount (Monthly)
Growth Percentage of SIP Investment
Expected Rate of Return (ROI)
Tenure of investment
Step 3: Click on the 'Calculate' tab.
Once you hit the calculate tab, the algorithm of this SIP calculator will calculate the amount of the return by using the data you fed.
At the end of the calculation, you will receive the following output from the step up SIP calculator:
The sum of all the SIPs you made during the tenure of your fund portfolio.
Approximate gains that you will make from your SIP investment.
Expected total returns that you will get at maturity
The step up SIP Calculator is an invaluable tool for you to optimise your Systematic Investment Plans (SIPs). With its ability to adjust SIP contributions over time, this calculator offers flexibility, goal-oriented planning, and informed decision-making. By visualising potential growth and providing valuable insights, it empowers you to make strategic choices and work towards achieving your financial aspirations. Using the SIP calculator can lead you on a path of disciplined and adaptive investment, ultimately helping you maximise returns and secure a brighter financial future.
Helps to check inflation and ensure that your investment remains valuable.
Helps you to smooth out the volatility of the market and ensure that your investment grows steadily over time.
If you have long-term investment goals, such as retirement or a child's education, then Step Up SIP can be a good way to reach your goals.
Investment amount = Initial investment amount * (1 + step-up percentage) ^ tenure
For example, if you start with an initial investment amount of ₹5,000 and a step-up percentage of 10%, your investment amount in the second year will be ₹5,500, in the third year, it will be ₹6,050, and so on.
*All savings are provided by the insurer as per the IRDAI approved
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^10(10D) Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
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