What is SIP?
SIP refers to "systematic investment plan". In SIP, we invest in a systematic manner in a security like-stocks, mutual funds, ETFs, Gold etc.. So a person investing through a SIP mode will invest say $1000 per month for the entire duration. The approach is to invest for long term and let the returns compound overtime. The expected rate of return can be calculated basis historical performance of the security and calculating the CAGR ( compound annual growth rate). CAGR is the average rate of returns for the specific period of time. You can find a CAGR calculator given below.
What is step-up SIP calculator?
Step-up SIP is different from SIP as this calculates the final amount if the SIP amount is increased by certain percentage every year. This approach works for individuals who anticipate increased income over a period of time due to promotions and increased business profits. These individuals usually plan to invest more every following year as their earning potential increases. You can find the step-up SIP calculator given below. In case, someone does not want to increase the amount every year, they can simply type 0 in the "Yearly Increase in SIP (%)" field.