Mirae Asset SIP Top-upBack to Facilities

SIP Top Up

Top-up your wealth with SIP Top-up.

SIP top-up allows investors to increase their installments by a fixed amount at pre-determined intervals.

To better understand how the process work in the SIP top-up feature and how different it is from regular SIP, let’s look at a hypothetical case study.

Rahul and Ajay start monthly SIP in a mutual fund. Rahul chooses regular SIP, while Ajay opts for SIP top-up wherein his SIP amount will increase by Rs 1,000 on a yearly basis for the next five years. At the end of the sixth year, Ajay increased his investments on an incremental basis (Table 1) to total of Rs 2.52 lakh compared with Rahul’s Rs 72,000.

Table 1: SIP Top-up Process

  Regular SIP SIP with Top-up Facility
Year Monthly SIP
amount
(Rs)
Total SIP in
the year
(Rs)
Monthly SIP
amount
(Rs)
Top-up
amount
(Rs)
Monthly SIP
amount
including
top-up
(Rs)
Total SIP
in the year
(Rs)
1 1000 12000 1000 - 1000 12000
2 1000 12000 1000 1000 2000 24000
3 1000 12000 2000 1000 3000 36000
4 1000 12000 3000 1000 4000 48000
5 1000 12000 4000 1000 5000 60000
6 1000 12000 5000 1000 6000 72000
  Total 72000       252000

Benefits

  • Useful when current surplus is low – Investors with initial low surplus for investment can use the SIP top-up facility to gradually invest more to achieve goals.
  • Auto route to increase savings – This feature works on auto pilot to increase savings in sync with rise in income.
  • Achieve goals faster – With incremental investing, wealth grows faster with the help of compounding, thereby helping investors to attain goals faster.
  • Convenience – It helps investors avoid the paper work associated with increasing SIP contribution during the tenure.
  • Maintenance - It reduces the necessity for creating and tracking multiple SIPs in the same scheme.
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