RupeeCase Education . Personal Finance . 1 of 3
Step-Up SIP vs Flat SIP
Your SIP Is
Shrinking Every
Year You Keep It Flat
Rs 10000 a month sounds consistent. At 6% inflation it buys Rs 5584 of units in real terms by year ten. The green streak stays green. The real weight keeps falling.
Year 0 . Real Value
10000
Rs . full purchasing power
Year 10 . Real Value
5584
Rs . after 6% inflation
Purchasing power lost in 10 years 44%
The SIP was consistent. Its purchasing power was not.

A flat SIP that never steps up is a contribution that quietly shrinks. The discipline is real. The weight is not.