SIP: Do you want to double your money? If yes, then try this 'secret' formula of SIP..
SIP TOP-UP: The craze of SIP in mutual funds is tremendous. In February 2025, SIP investment reached a record level of Rs 26,000 crore. Systematic Investment Plan (SIP) investment in mutual funds promotes long-term investment. SIP can be done every month, week, or daily. In long-term SIP, investors get the benefit of compounding. One of the facilities in this is Top-Up SIP. That is, if you add a fixed amount every year to the monthly SIP, then your corpus can double. So if you also want to double your money, then you should adopt this secret formula of SIP.
How does TOP-UP SIP work?
TOP-UP SIP can be understood in such a way that you have chosen the option of a monthly SIP of Rs 10,000. By the way, as your salary is increasing every year, you can top up some amount in SIP every year in that proportion. Let's understand this through calculation.
Understand SIP calculation like this.
SIP Monthly SIP (₹) Period (years) Estimated return (%) Total investment (₹) Value of SIP after 20 years (₹) Estimated profit (₹)
Regular SIP 10,000 20 12% 24 lakh 99.91 lakh (1 crore) 75.91 lakh
Top-Up SIP 10,000 (10% annual top-up) 20 12% 68.73 lahks 1.99 crore (2 crores) 1.30 crore
SIP TOP-UP: Goals will be accomplished quickly
According to experts, the formula of TOP-UP SIP along with regular SIP can give you tremendous benefits. TOP-UP SIP is a facility in which you can add some amount to your regular SIP every year. For example, as your salary increases every year, you TOP-UP some amount in SIP every year in that proportion. Through TOP-UP SIP, you can achieve your investment goal quickly and easily.
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
