A step-up SIP (Systematic Investment Plan) is an investment strategy where the investment amount increases periodically over time. The formula to calculate the yearly amount of a step-up SIP depends on the specific rules and parameters of the plan.
However, I can provide you with a general formula that can be used as a starting point:
Yearly Amount = Initial Amount + (Step-up Percentage × Number of Years)
In this formula:
– Initial Amount: The initial investment amount at the beginning of the SIP.
– Step-up Percentage: The percentage by which the investment amount increases each year.
– Number of Years: The total number of years for which the step-up SIP is planned.
Please note that this formula assumes a linear increase in the investment amount each year. In practice, the rules and parameters of a step-up SIP may vary, and the actual calculation may involve more complex formulas or rules. It’s always best to refer to the specific plan’s documentation or consult with a financial advisor for accurate calculations based on the particular step-up SIP you are considering.
