Mutual fund

Increasing your SIP contributions

How to Increase SIP Contributions Investors can raise their monthly SIP amount in two main ways. The first is through a step-up SIP, where the investment amount automatically increases at set intervals, such as every six months or annually.

The second option is to simply top up the existing SIP with a higher amount whenever possible, without needing additional formal registration.

Should You Add a New Scheme or Increase Existing SIPs? Experts generally recommend topping up existing SIPs rather than adding new schemes, as adding more schemes can complicate portfolio management. However, if your current portfolio lacks exposure to certain sectors or asset classes, adding a new scheme could enhance diversification.

For example, introducing an international or sectoral fund could broaden your investment base.

If your income increases significantly or you receive a lump sum bonus, consider investing it in equity funds through SIPs. For instance, if you’re investing ₹10,000 monthly in one equity fund and have an extra ₹5,000, it may be simpler to add this amount to the existing SIP than to set up a new one.