Rahul's daughter just turned one, and he's already planning for her future. Is a Step-up SIP the magic bullet for higher education? Let's find out!
A Systematic Investment Plan (SIP) means investing a fixed amount regularly. A Step-up SIP takes it further: you increase your investment annually! As your income grows, so does your child's education fund.
Education costs are skyrocketing (often 8-10% annually!). A Step-up SIP helps you keep pace, matches your rising income, and supercharges compounding. It's critical for long-term goals!
Let's compare a ₹10k/month SIP for 18 years (12% return): - Regular SIP: ~₹76 Lakhs - Step-up SIP (10% annual increase): A whopping ~₹1.8 Crore! See the massive difference!
Match your step-up percentage to your expected salary hike (e.g., 10%). For long-term goals (15+ years), choose equity funds like Flexi-cap or Nifty 50 Index funds for maximum growth potential.
Don't forget to step up annually! Avoid unrealistic increment rates. Review your plan yearly. Don't panic during market dips, and always keep your child's education goal separate.
Ready to calculate your child's education fund? Use our Goal SIP & Step-up Calculators at sipplancalculator.in to map out their bright academic journey! Start planning now.