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What Is Step-Up SIP? This Simple Trick Can Double Your Retirement Savings
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Starting a SIP is easy, but building real wealth takes one extra habit. This simple yearly step can quietly transform an ordinary SIP into a powerful retirement corpus
By aligning your SIP with your income growth, you make full use of compounding while protecting your savings from inflation.
Nowadays, Systematic Investment Plans (SIPs) are widely seen as one of the most reliable long-term investment options. Many people begin investing a small amount every month from their first job to secure their future. However, few realise that a simple SIP strategy can almost double your retirement corpus. This lesser-known method is called a Step-Up SIP.
What Is A Step-Up SIP?
In a regular SIP, you invest a fixed amount in a mutual fund every month and continue with the same contribution for years. A Step-Up SIP improves on this approach by increasing your monthly investment slightly each year, usually by 5% to 10%.
As your salary rises over time, your ability to invest also improves. Step-Up SIP allows you to increase your investment gradually, without putting pressure on your monthly budget.
How Much Can A Regular SIP Create?
Let’s assume you are 30 years old and just starting your career.
Monthly salary: Rs 40,000
Monthly SIP investment (30% of salary): Rs 12,000
If you invest Rs 12,000 every month for 30 years without increasing the amount, and earn an average annual return of 12%, your retirement corpus could grow to around Rs 3.70 crore.
While compounding plays a major role in growing your investment, many investors ignore inflation. After 30 years, Rs 3.70 crore will not have the same purchasing power as it does today. Rising medical expenses, daily living costs, and lifestyle needs at retirement can significantly reduce its real value.
How A Step-Up SIP Delivers Bigger Returns
Now consider investing the same Rs 12,000 through a Step-Up SIP, increasing the amount by 8% every year.
Year 2 SIP: Rs 12,960
Year 3 SIP: Around Rs 14,000, and so on
With the same average annual return of 12%, your total corpus after 30 years could grow to approximately Rs 7.61 crore.
Simply increasing your SIP contribution each year can nearly double your retirement fund. This is why Step-Up SIP is considered one of the most effective ways to beat inflation.
The key difference is not the mutual fund scheme, but the discipline of increasing your investment regularly. By aligning your SIP with your income growth, you make full use of compounding while protecting your savings from inflation.
Who Should Opt For A Step-Up SIP?
Step-Up SIP is ideal for:
- Young professionals whose salaries increase every year
- Investors aiming to build a large retirement corpus
- Those who want to reduce the long-term impact of inflation
- People planning for children’s education or major future goals
- Investors seeking better inflation-adjusted returns
Planning Your SIP The Right Way
If you are planning a long-term SIP for retirement, simply starting an SIP is not enough. You must begin with the right amount and increase it every year.
Choosing equity mutual funds can be a smart move, as they have historically delivered returns that outpace inflation. For instance, many large-cap mutual funds have delivered average annual returns of over 12% over the past decade.
The right plan, financial discipline, and the habit of stepping up your SIP every year can help you build a strong retirement fund and enjoy a financially secure, worry-free life after retirement.
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January 09, 2026, 16:10 IST
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Oil market price battle: Russia and Iran offer deeper discounts to China as crude piles up at sea – The Times of India
Russian and Iranian oil producers are reportedly offering deeper discounts to compete for the same limited pool of Chinese buyers after India pulled back from purchases. Analysts say India’s imports from Russia could fall by 40 per cent from January levels, to around 600,000 barrels a day, according to a scenario from Rystad Energy, as reported by Bloomberg.Much of the displaced crude is heading east, sparking a price war with Iranian suppliers, long favoured by China’s independent refiners, known as teapots. Russian Urals crude is reportedly selling at about $12 a barrel below ICE Brent, up from a $10 discount last month. Iranian Light crude is going for as much as $11 below the global benchmark, widening from $8–$9 in December, according to traders.
“The Chinese private refiners cannot take in much more as their capacity is likely maxed out,” said Jianan Sun, an analyst at Energy Aspects, noting that sanctioned barrels are building up in both onshore and offshore storage.China’s teapots historically act as a pressure valve, absorbing barrels shunned by others, but their capacity is limited; they account for roughly a quarter of the country’s refining capacity and are also subject to government import quotas. Major state-owned refiners, meanwhile, have traditionally avoided Iranian crude and have recently largely stayed away from Russian barrels as well.With China unable to fully absorb the displaced supply, unsold oil is piling up in Asian waters, leaving Russia and Iran scrambling. The Kremlin has already cut output, depriving it of funds for its war in Ukraine, while Iran is trying to ship as much oil as possible amid fears of a potential US strike.Data shows Russian oil deliveries to Chinese ports rose to 2.09 million barrels a day in the first 18 days of February, a roughly 20 per cent increase from January and nearly 50 per cent higher than December. By contrast, Iranian exports to China have fallen about 12 per cent from a year earlier, to roughly 1.2 million barrels a day, according to Kpler. The firm estimates nearly 48 million barrels of Iranian crude are now at sea, up from about 33 million in early February. Russian cargoes sitting in Asian waters total around 9.5 million barrels.A potential US strike on Iran could disrupt exports if oil facilities are targeted or shipments through the Strait of Hormuz are blocked. Russian barrels carry a “relatively lower level of risk” for Chinese buyers compared with Iranian crude, said Lin Ye, vice president of oil markets at consultancy Rystad Energy, citing optimism over a potential ceasefire in Ukraine.
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