Make Your Investment Inflation-Proof with Step-Up SIPs

Back in 2015, Aniket set out on a financial adventure with discipline, determination and a mutual fund SIP investment of Rs 10,000 every month. His goal? To make Rs 1 crore by 2035 to fund his dream house, ensure a comfortable retirement and maybe even send his kids abroad for higher studies.

For 20 years, Aniket was as consistent as your morning tea. No skips, no delays. Assuming a steady 12% CAGR, he expected his Rs 10,000 per month to bloom into a magnificent Rs 1 crore. But hold up, there’s a plot twist. The Rs 1 crore that Aniket dreams about in 2035 won’t have the same value as Rs 1 crore today. Thanks to inflation, which averages around 6% in India, that crore will feel more like Rs 28 lakh in today’s money.

Aniket’s salary doubled, expenses rose and his lifestyle upgraded but his SIP didn’t. Inflation slowed down the value of his investments. That dream house, retirement fund or foreign education plan might fall short unless Aniket adapts his plan.

The SIP Revolution Is Here, But Are You Making the Most of It?

SIP investing has exploded in India. June saw record SIP contributions of Rs 27,269 crore, with the mutual fund industry’s assets under management crossing Rs 74 lakh crore. Investors are waking up to the power of SIP investment and the discipline it demands.

However, many fall into the trap of “start early, invest regularly” and forget to invest smartly. Most investors begin their SIPs but never revisit or revise the amounts. The average SIP ticket size in India is around Rs 3,100 per month, while urban incomes average over Rs 7 lakh annually. This mismatch means many investor contributions don’t keep pace with their lifestyle or inflation.

Step-Up SIP: Your Inflation-Busting Best Friend

The answer lies in the best systematic investment plan mutual fund that offers a Step-Up SIP facility, allowing you to automatically increase your SIP contributions at regular intervals, aligning your investments with income hikes and inflation.

For example, if you start with Rs 10,000 this year, a 10% annual increase means you invest Rs 11,000 the next year, Rs 12,100 the following year and so on. Small hikes over time make a massive difference, thanks to compounding.

Don’t Let Lifestyle Creep Eat Your Future

It’s easy to let lifestyle upgrades gobble up extra income. Promotions lead to new car’s, salary hikes bring gadgets & EMIs and bonuses often mean vacations and shopping sprees.

But if you borrow your lifestyle on credit, you risk compromising your long-term financial goals. Household debt in India has climbed to 41% of GDP, with 54% of that being ‘non-housing retail loans’ often spent on lifestyle expenses.

At MINTIT, we understand that picking the best SIP and calculating inflation-adjusted returns can be daunting. That’s why our platform simplifies it for you.

You set your financial goals, select the tenure and start your investment with a built-in inflation-proof feature. Our algorithm tailors the perfect mix of funds to your profile and risk appetite, ensuring you get a portfolio that grows with you; not just in numbers but in real, inflation-adjusted wealth.

Step-Up and Invest Smart

Discipline is important but smart investing is crucial. Don’t just start a SIP and forget it. Review, revise and ramp it up with a Step-Up SIP. Remember, the goal is to let compounding work it’s magic while your investments keep pace with your life.

Start your Step-Up SIP with MINTIT today and watch your money grow, not just in digits, but in value too. Happy Investing!