Constant SIP Vs SIP Top-up (increase) every year
- Vinay Kumar Laxman
- Nov 10
- 3 min read
1. Constant SIP
Some of us start SIPs for a certain amount and don’t increase the SIP amount each year along with our salary increments. If the SIP is not increased every year, it will result in a far lower corpus at the end of the investment period. You can check the below table for details.
Year | SIP amount | Assumed return p.a | Invested amount | Current market value at year end |
1 | 20000 | 12% | 2,40,000 | ₹ 2,55,330 |
2 | 20000 | 12% | 4,80,000 | ₹ 5,41,300 |
3 | 20000 | 12% | 7,20,000 | ₹ 8,61,585 |
4 | 20000 | 12% | 9,60,000 | ₹ 12,20,306 |
5 | 20000 | 12% | 12,00,000 | ₹ 16,22,072 |
6 | 20000 | 12% | 14,40,000 | ₹ 20,72,051 |
7 | 20000 | 12% | 16,80,000 | ₹ 25,76,027 |
8 | 20000 | 12% | 19,20,000 | ₹ 31,40,480 |
9 | 20000 | 12% | 21,60,000 | ₹ 37,72,668 |
10 | 20000 | 12% | 24,00,000 | ₹ 44,80,718 |
11 | 20000 | 12% | 26,40,000 | ₹ 52,73,734 |
12 | 20000 | 12% | 28,80,000 | ₹ 61,61,912 |
13 | 20000 | 12% | 31,20,000 | ₹ 71,56,671 |
14 | 20000 | 12% | 33,60,000 | ₹ 82,70,802 |
15 | 20000 | 12% | 36,00,000 | ₹ 95,18,628 |
16 | 20000 | 12% | 38,40,000 | ₹ 1,09,16,193 |
17 | 20000 | 12% | 40,80,000 | ₹ 1,24,81,466 |
18 | 20000 | 12% | 43,20,000 | ₹ 1,42,34,572 |
19 | 20000 | 12% | 45,60,000 | ₹ 1,61,98,051 |
20 | 20000 | 12% | 48,00,000 | ₹ 1,83,97,147 |
21 | 20000 | 12% | 50,40,000 | ₹ 2,08,60,135 |
22 | 20000 | 12% | 52,80,000 | ₹ 2,36,18,681 |
23 | 20000 | 12% | 55,20,000 | ₹ 2,67,08,253 |
24 | 20000 | 12% | 57,60,000 | ₹ 3,01,68,573 |
25 | 20000 | 12% | 60,00,000 | ₹ 3,40,44,131 |
2. SIP Top-up every year
If you increase the SIP amount every year along with your salary increments, then it will result in a much bigger corpus. You can check the below table for details.
Year | SIP amount | Assumed return p.a | Invested amount | Current market value at year end |
1 | 20000 | 12% | 2,40,000 | ₹ 2,55,330 |
2 | 25000 | 12% | 5,40,000 | ₹ 6,05,132 |
3 | 30000 | 12% | 9,00,000 | ₹ 10,60,743 |
4 | 40000 | 12% | 13,80,000 | ₹ 16,98,692 |
5 | 50000 | 12% | 19,80,000 | ₹ 25,40,860 |
6 | 60000 | 12% | 27,00,000 | ₹ 36,11,753 |
7 | 70000 | 12% | 35,40,000 | ₹ 49,38,818 |
8 | 80000 | 12% | 45,00,000 | ₹ 65,52,796 |
9 | 90000 | 12% | 55,80,000 | ₹ 84,88,116 |
10 | 100000 | 12% | 67,80,000 | ₹ 1,07,83,340 |
11 | 110000 | 12% | 81,00,000 | ₹ 1,34,81,656 |
12 | 120000 | 12% | 95,40,000 | ₹ 1,66,31,434 |
13 | 130000 | 12% | 1,11,00,000 | ₹ 2,02,86,851 |
14 | 140000 | 12% | 1,27,80,000 | ₹ 2,45,08,583 |
15 | 150000 | 12% | 1,45,80,000 | ₹ 2,93,64,587 |
16 | 160000 | 12% | 1,65,00,000 | ₹ 3,49,30,977 |
17 | 170000 | 12% | 1,85,40,000 | ₹ 4,12,92,999 |
18 | 180000 | 12% | 2,07,00,000 | ₹ 4,85,46,129 |
19 | 190000 | 12% | 2,29,80,000 | ₹ 5,67,97,299 |
20 | 200000 | 12% | 2,53,80,000 | ₹ 6,61,66,274 |
21 | 210000 | 12% | 2,79,00,000 | ₹ 7,67,87,192 |
22 | 220000 | 12% | 3,05,40,000 | ₹ 8,88,10,284 |
23 | 230000 | 12% | 3,33,00,000 | ₹ 10,24,03,813 |
24 | 240000 | 12% | 3,61,80,000 | ₹ 11,77,56,230 |
25 | 250000 | 12% | 3,91,80,000 | ₹ 13,50,78,602 |
Conclusion:
Constant SIP resulted in a corpus of 3.4 Crore and a Top-up SIP resulted in much bigger corpus of 13.5 Crore. Increase your SIPs without fail every year.
Advantages of SIP Top-up/increase every year:
Keeps your investment in line with your increasing income and inflation.
Boosts long-term wealth creation — small yearly increases compound significantly over time.
Results in a much bigger corpus.
Disclaimer:
Mutual fund investments are subject to market risks. Please read the scheme information and other related documents before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.
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