Top-up SIP (Step-up SIP) — Mutual Fund Term Explained

Mutual fund portfolio advisor · BBA, Sarvajanik University

Published 28 Jun 2026 · Updated 28 Jul 2026

A SIP where the monthly contribution increases automatically each year. Helps align investments with salary increments.

A Top-up SIP automatically increases your SIP contribution every year by a fixed amount or percentage. A ₹5,000 SIP with 10% annual step-up becomes ₹5,500 in year 2, ₹6,050 in year 3, and so on.

One of the most powerful ways to accelerate long-term wealth creation.

Related terms

SIP (Systematic Investment Plan) — Investing a fixed amount in a mutual fund at regular intervals — typically monthly. Builds discipline and uses rupee cost averaging to reduce timing risk.
CAGR — Compound Annual Growth Rate. Measures how much a lump sum investment grew per year on average. Not ideal for SIP returns — use XIRR instead.

Browse the full mutual fund glossary, or see this concept in action in the fund screener.