Calculate SIP returns with a yearly step-up (top-up), see the year-by-year growth, and compare a SIP with a lump-sum investment.
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month. With a step-up (or top-up) SIP, the monthly amount rises by a set percentage each year, usually in line with your salary.
Even a 10% yearly step-up can make the final corpus much bigger than a flat SIP, because the larger instalments still have years to compound.
Equity mutual funds have returned about 10–12% a year over long periods in India, but returns are not guaranteed. Try a lower figure to be cautious.
It builds a much larger corpus because you invest more as your income grows. It only helps if you can afford the higher instalments.
With steady returns a lump sum ends higher because all the money is invested for longer. A SIP reduces the risk of investing everything just before a market fall.