SIP Step-Up FAQs

A step-up sip in mutual fund is essentially a regular SIP with a twist. A step-up SIP refers to an incremental SIP approach where your investment amount increases at fixed intervals, helping your wealth-building strategy evolve along with your income.

A step-up SIP with initial investment begins just like a normal SIP – choose your fund, set a start date, and invest a fixed sum. Over time, you schedule a predetermined increment in your investment amount at a set interval. This approach helps utilize the power of compounding more effectively.

Individual Investors, Sole Proprietorship, Minors and HUF can avail step-up feature. Step-up feature is not available for non-individuals.

• Choose a suitable mutual fund
• Select a fund aligned with your financial goals and risk appetite.
• Enter your SIP base amount: Begin your step-up sip with initial investment at an amount you’re comfortable with.
• Select Step Option as ‘Step-up’
• Enter Step-up amount: Enter the amount you wish to add to your SIP base amount
• Select Step-up After option as ‘Once’ or ‘Every Defined Instalment’
• Enter Defined No. of Instalments

Note: At any point of time if the revised SIP amount is greater than the maximum limit of the associated mandate, then the current and future instalments shall continue with previous instalment amount.

For option selected as ‘Once’, the SIP amount will be incremented only once after the defined number of instalments and further instalments will continue with the revised/stepped up amount till the SIP tenure.

Example:

• SIP Amount: 1000
• Step Option: ‘Step-up’
• Step-up amount: 200
• Step-up After option as ‘Once’
• Defined No. of Instalments: 3

In this case, first 3 instalments will be executed with amount 1000 and all further instalments will be executed 1200

For option selected as ‘Every Defined Inst’, the SIP amount will be incremented after every defined number of instalments till the SIP tenure.

Example:

• SIP Amount: 1000
• Step Option: ‘Step-up’
• Step-up amount: 200
• Step-up After option as ‘Every Defined Inst.’
• Defined No. of Instalments: 3

In this case, after every 3 instalments SIP amount will be incremented with 200 i.e. First 3 instalments will be 1000, next 3 instalments will be 1200, next 3 instalments will be 1400 and so on.

Yes, step-up feature can be availed for an SIP registered on or after 01-Oct-2017.

No, step-up feature cannot be availed for special product SIP.

No, step-up feature can be used only once.

No, step-up SIP cannot be paused.

No, you cannot stop the step-up feature and migrate to normal SIP. You need to cancel your step-up SIP and register a fresh SIP.

SIPSaS provision will not be available for stepped-up SIPs.

No, step-up feature is not available for physical SIP transactions.

Modification facility is not available. You may cancel existing step-up SIP and register a fresh one.

If the date of setting up Step-up feature is 5 days prior to the upcoming instalment, then revised SIP amount shall be effective as per scenario 1.

If the date of setting up Step-up feature is between 1-5 days prior to the upcoming instalment, then revised SIP amount shall be effective as per scenario 2.