Same Rs 10000 start.
Three different endings.
A monthly SIP of Rs 10000 over 25 years at 12 percent. One flat. One chasing 2 extra points of return. One stepped up 10 percent every year, the way a salary actually grows. Illustrative.
| The SIP |
Put in |
Ended at |
| Flat 10000 . 12 pct | 30.0L | 1.88 cr |
| Flat 10000 . 14 pct (chase) | 30.0L | 2.70 cr |
| Step up 10 pct/yr . 12 pct | 118.0L | 4.23 cr |
Chasing 2 more points of return added 0.82 cr. Stepping up the contribution added 2.35 cr. Honest version. the step-up is not free, you put in more. But it only tracks your raises, the bite of pay cheque lifestyle would have eaten anyway.