Top-up your wealth with SIP Top-up.
SIP top-up allows investors to increase their installments by a fixed amount at pre-determined intervals.
To better understand how the process work in the SIP top-up feature and how different it is from regular SIP, let’s look at a hypothetical case study.
Rahul and Ajay start monthly SIP in a mutual fund. Rahul chooses regular SIP, while Ajay opts for SIP top-up wherein his SIP amount will increase by Rs 1,000 on a yearly basis for the next five years. At the end of the sixth year, Ajay increased his investments on an incremental basis (Table 1) to total of Rs 2.52 lakh compared with Rahul’s Rs 72,000.
Table 1: SIP Top-up Process