How to Increase SIP Amount
There are two main ways to increase your SIP (Systematic Investment Plan) amount in India: manually starting an additional SIP in the same fund, or using the step-up SIP (also called top-up SIP) facility that automatically increases your SIP amount at regular intervals. Increasing your SIP amount as your income grows is one of the most powerful strategies for accelerating long-term wealth creation.
Method 1: Start an Additional SIP in the Same Fund
Most platforms allow multiple SIPs in the same fund with different amounts and dates. For example, if you already have a Rs 3,000 SIP on the 5th of each month, you can add another Rs 2,000 SIP on the 15th. Both SIPs continue independently. This gives you flexibility to stop the additional SIP if needed without affecting the original.
Method 2: Use the Step-Up SIP (Top-Up) Facility
Many AMCs and platforms offer a step-up SIP facility where the SIP amount automatically increases by a specified amount or percentage every 6 or 12 months:
- Fixed step-up: Increase by Rs 500 or Rs 1,000 every 6 months.
- Percentage step-up: Increase by 10% or 15% every year.
This automates the process of increasing investment as income grows, without requiring annual manual action.
Impact of Step-Up SIP on Final Corpus
| SIP Strategy | Starting Amount | Duration | At 12% Return |
|---|---|---|---|
| Fixed SIP | Rs 5,000/month | 20 years | Approximately Rs 49.9 lakh |
| 10% annual step-up | Rs 5,000/month | 20 years | Approximately Rs 1.05 crore |
A 10% annual step-up more than doubles the final corpus compared to a flat SIP, demonstrating the immense power of increasing SIP amounts over time.
Method 3: Cancel and Restart with Higher Amount
Some older platforms or AMCs may not support multiple SIPs or step-up; in these cases, you can cancel the existing SIP and start a new one with the higher amount. Be mindful of the next SIP date to avoid missing a month's investment during the transition.
When to Increase Your SIP
- When you receive an annual salary increase: increase SIP by at least 50% of the increment.
- When a major expense ends (loan paid off, child's fees completed): redirect those freed EMIs into SIP.
- When you receive a bonus or windfall: add a lump sum to your mutual fund investment.
Key Takeaway
Increasing your SIP amount regularly, even by small increments, dramatically accelerates wealth creation over time. The step-up SIP facility makes this automatic and effortless. Use the Lemonn app to set up step-up SIPs, model the impact of different growth rates on your final corpus, and make your investments grow in line with your income.
