Investment is a long-term and a long drawn process and the results are yielded after a good amount of patience and sound decisions. As an investor, you should keep on reviewing your needs, depending on your age and fund vis-à-vis inflation. Your systematic investment plan (SIP) is one such investment that needs stepping up every year, especially in your younger days. It should be increased every year in line with the inflation rate, income status, and investment goals.
Need for SIP top-up
The need to step up any investment has its basis on the fact that the value of the currency is eroding with time. According to consumer price index, today’s Rs 206.50 is equivalent to Rs 100’s value 10 years back. The average inflation rate in the last 10 years has been 7.57%. In the last 20 years, the average inflation rate has been 6.54%.
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