Rs 4,444 SIP vs Rs 3,333 Step Up SIP: Which will give higher return in 25 years? See estimates for 12%, 13%, 14% and 15% annualised returns

Priya Vishwakarma | Jan 29, 2025, 02:22 PM IST

SIP vs Step-Up SIP: If you want to invest for the future without compromising your daily needs, then proper financial planning is essential. Currently, there are many investment options available in the market. However, if you aim to build a substantial corpus through regular and disciplined investing, mutual fund SIPs can be a good choice. There are two mainly types of SIPs: Regular SIP and Step-Up SIP. In this write-up, we will explain, with calculations, which type of SIP will provide higher returns over 25 years.

(Disclaimer: This is not investment advice. The calculations presented are projections. Please do your own due diligence or consult a financial advisor for personalized advice.)

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What is SIP?

What is SIP?

It is a market-linked investment option in which investors can invest monthly, quarterly, or annually based on their convenience and capacity. The key to building a substantial fund through SIPs is consistency. 

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What is Step-Up SIP?

What is Step-Up SIP?

Step-Up SIP involves gradually increasing your monthly investment at regular intervals (e.g., increasing by 5 per cent, 10 per cent each year). 

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Regular SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 4,444, assuming an annualised return of 12%?

Regular SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 4,444, assuming an annualised return of 12%?

With a 12 per cent annual return rate, if you invest Rs 4,444 per month in a regular SIP then,
- Total Investment: Rs 13,33,200
- Expected Capital Gain: Rs 70,99,890
- Total Corpus Received: Rs 84,33,090

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Regular SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 4,444, assuming an annualised return of 13%?

Regular SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 4,444, assuming an annualised return of 13%?

With a 13 per cent annual return rate, if you invest Rs 4,444 per month in a regular SIP then,
- Total Investment: Rs 13,33,200
- Expected Capital Gain: Rs 87,61,057
- Total Corpus Received: Rs 1,00,94,257

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Regular SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 4,444, assuming an annualised return of 14%?

Regular SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 4,444, assuming an annualised return of 14%?

With a 14 per cent annual return rate, if you invest Rs 4,444 per month in a regular SIP then,
- Total Investment: Rs 13,33,200
- Expected Capital Gain: Rs 1,07,86,822
- Total Corpus Received: Rs 1,21,20,022

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Regular SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 4,444, assuming an annualised return of 15%?

Regular SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 4,444, assuming an annualised return of 15%?

With a 15 per cent annual return rate, if you invest Rs 4,444 per month in a regular SIP then,
- Total Investment: Rs 13,33,200
- Expected Capital Gain: Rs 1,32,61,224
- Total Corpus Received: Rs 1,45,94,424

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Step-UP SIP Calculations

Step-UP SIP Calculations

Now, let’s look at the Step-Up SIP and calculate how much money you can accumulate with an initial investment of Rs 3,333 per month, increasing by 5 per cent annually over 25 years.

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Step-Up SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 3,333, assuming an annualised return of 12%?

Step-Up SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 3,333, assuming an annualised return of 12%?

With a 12 per cent annual return rate, if you invest Rs 3,333 per month, increasing the amount by 5 per cent each year then,
- Total Investment: Rs 19,08,893
- Expected Capital Gain: Rs 72,06,149
- Total Corpus Received: Rs 91,15,042

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Step-Up SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 3,333, assuming an annualised return of 13%?

Step-Up SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 3,333, assuming an annualised return of 13%?

With a 13 per cent annual return rate, if you invest Rs 3,333 per month, increasing the amount by 5 per cent each year then,
- Total Investment: Rs 19,08,893
- Expected Capital Gain: Rs 87,98,083
- Total Corpus Received: Rs 1,07,06,976

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Step-Up SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 3,333, assuming an annualised return of 14%?

Step-Up SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 3,333, assuming an annualised return of 14%?

With a 14 per cent annual return rate, if you invest Rs 3,333 per month, increasing the amount by 5 per cent each year then,
- Total Investment: Rs 19,08,893
- Expected Capital Gain: Rs 1,07,19,399
- Total Corpus Received: Rs 1,26,28,292

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Step-Up SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 3,333, assuming an annualised return of 15%?

Step-Up SIP: How much money will you accumulate in 25 years with a monthly SIP of Rs 3,333, assuming an annualised return of 15%?

With a 15 per cent annual return rate, if you invest Rs 3,333 per month, increasing the amount by 5 per cent each year then,
- Total Investment: Rs 19,08,893
- Expected Capital Gain: Rs 1,30,43,304
- Total Corpus Received: Rs 1,49,52,197

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