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Step-Up SIP Calculator

Looking to increase your SIP Investment amount annually? Compute your returns with an increased amount using our Step-Up Calculator. Top up a calculator or Step up Calculator gives you the future value of your SIP investments when you increase SIP annually by a given percentage. It uses the power of compounding to grow your savings.





About Fintra’s Step-up SIP Calculator


What is Step-up SIP is the question on everyone’s mind even by the investors who have been investing for a long time. So here’s the guide on basics of Step-up SIP Calculator to help you achieve your financial goals.

What is SIP?

SIP or Systematic Investment Plan is a financial tool that helps to create wealth by enabling an investor to invest a fixed amount regularly (weekly, monthly, quarterly) in a mutual fund scheme. Since here the investing is done in regular intervals the amount of risk associated with market instability is reduced effectively.  

You can think of SIP as a type of Recurring deposit for mutual funds with fund houses and brokers promoting this to help people grow their money. The evidence of how much your investment is worth is calculated with the help of a SIP calculator. The difference in recurring deposits and SIP being that in the recurring deposit you get a fixed return given by bank where in case if sip plans it is dependent on a range of market factors. Benefits of sip investment over lump-sum investments are numerous.


What is Step-up SIP?

Step-up SIP is increasing the value of your SIP value in a periodic interval. Every year when your salary or income increases, you should try to increase the SIP by a similar percentage so that your income can grow accordingly.        

Why top-up or Step up your SIP?

The biggest benefit of SIP is convenience. You can start, stop, increase or decrease the amount at any time and put this on auto-debit mode. This continuous habit of investment brings in financial discipline. The reason why you should step up your SIP with every hike is to benefit from the power of compounding. Your savings will grow tremendously if you stay disciplined with your SIP. Fintra suggests that is your income grows by 10%, you should definitely increase your SIP investments appropriate or by at least 5% to 6%

 


What is Step-up SIP Calculator?

Fintra’s Step-up SIP calculator is a simple tool compute returns made on your SIP primarily on your mutual fund investments. This tool allows you to increase your SIP by a certain percentage amount on a periodic basis. This is an approximate return and the actual return may vary due to tax, exit loads, expense ratio, etc. Fintra encourages you to invest in the mutual fund via SIP as it brings in financial discipline and inculcates the habit of saving. Most importantly you will benefit from the power of compounding when you invest in Mutual Funds via SIP.

Steps to use Step-up SIP Calculator

  1. Enter the amount you are comfortable with investing monthly. Most of the sip plans will start with a minimum of Rs 500 with some varying to Rs1000 a month.
  2. Estimate the rate of return on your investment. You can use historical return for reference but keep in mind that future returns may vary depending upon market conditions.
  3. Enter the Annual Step up percentage on your SIP.
  4. Enter the period you are willing to invest for. The amount of time you want to continue investing and it ranges from 6 months minimum to 12 with different SIP plans.

Save On Taxes

Benefits of Step-up SIP over lump-sum investments

  1. No need to speculate and see for the time of investment in the market.
  2. By Stepping up your SIP, your investments can grow in proportion with your income. This promotes the habit of Financial discipline
  3. Power of compounding – the small amount invested regularly will result to a larger return.
  4. You can start with as low as Rs 500 sum of money to invest.
  5. Automated payments – need not to worry about paying money each month
  6. Market risk reduced – monthly investment ensures money is not affected by market volatility

You can also customize your SIP. Many fund houses allow investors to invest monthly, bi-monthly and fortnightly. They are step-up SIP’s too which allow an investor to increase the sip amount periodically.


FAQs about SIP


Is SIP a mutual fund?
SIP is not mutual but is an investment style. It allows you to invest in a mutual fund of your choice in periodic style. Most of the people opt for monthly SIP

What happens on missing SIP or Step-up SIP payment?
Since SIP is auto-debited from your bank account, you do not need to worry on missing the SIP payments. Even if you were to miss any SIP payment due to insufficient balance or any other reason, there is no penalty or fees.

However, your SIP might be cancelled if you miss a few SIPs.

How do I reduce/increase my SIP amount?
To modify any existing SIP, simply login to your AMC website and stop the existing one and restart a new SIP with higher/lower amount depending upon your needs

Can I cancel my SIP?
You can definitely cancel the SIP by
a) Login to the Mutual Fund house’s website and cancel SIP option is available under upcoming transactions.
b) Alternately, you can log in to your bank website and remove the Mutual fund Biller under Payee/biller section. This will stop Mutual Fund house in auto-debit feature from the bank account.
c) For offline process, you can visit the nearest branch or connect with your relationship manager to have the SIP cancelled.

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