Wealth Creation: What is SIP step-up strategy and how you can use it to reach financial goals faster?
Wealth Creation: What is SIP step-up strategy and how you can use it to reach financial goals faster? SIP step-up strategy: Systematic Investment Plan or SIP is one of the most convenient and effective methods to invest in mutual funds. This feature in mutual funds helps investors in planning their financial goals and slowly working towards them. There are various strategies used while investing through SIP — one of them being step-up strategy. What is a SIP step-up strategy? A step-up SIP entails automatically increasing monthly SIP contributions on a periodic basis. According to Tanvi Kanchan, Head Corporate Strategy at Anand Rathi Shares and Stock Brokers, with a ‘Step up SIP’ strategy or a ‘Top Up SIP’ plan, investors can gain the benefit of increasing their contribution in SIPs, either by a fixed percentage or a fixed amount. She added that investors can do this in line with their current income, expected yearly increments, and financial goals. This lays ...