A step-up SIP increases the monthly investment on a schedule — commonly once a year by a fixed percentage when you get a raise. It acknowledges that a ₹10,000 SIP that felt right at age 25 may be too small at age 35.
Why step-up matters
Most people earn more over time. Keeping the SIP frozen means your savings rate can fall as lifestyle and income rise. A modest annual step-up often changes long-horizon corpus more than debating a 1% higher assumed return.
How EnrichReturns models it
On tools with step-up (such as SIP What-If / Crore Builder), the SIP amount rises after each completed year by the percentage you enter. The engine then compounds month by month — it does not assume a magic closed form for a changing contribution.
Practical guardrails
Step up only what cash flow allows after EMIs and emergency savings. Align equity-heavy SIPs with long goals. Review the rate yearly; a 10% step-up forever may outpace real raises.