# Regular vs Step-up SIPs: Corpus Growth Versus Annualized Returns Increasing monthly contributions builds larger wealth but does not necessarily improve your XIRR. - **Source:** [mint - money](https://www.livemint.com/rss/money) - **Published:** 2026-10-17 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/e5e79f4b-a2f7-4e8d-8f27-8251a6b6b395 ## Core Investment Strategies Compared Investors utilize regular SIPs, fixed top-ups, and variable top-ups to manage long-term wealth. A regular SIP maintains constant monthly contributions, while fixed top-ups increase payments by a set amount annually. Conversely, variable top-ups raise contributions by a fixed percentage each year, allowing investors to scale their savings alongside rising personal income levels. ## Analyzing the 25-Year Performance Over a 25-year period in the BSE Sensex TRI, a standard ₹10,000 monthly SIP resulted in a ₹209.90 lakh corpus with a 13.24% XIRR. By contrast, a fixed ₹1,000 annual top-up grew the corpus to ₹318.22 lakh, though the XIRR slightly declined to 12.70% due to the increased total capital invested. ## Variable Top-up Wealth Impact Implementing a 10% annual variable top-up strategy led to a total investment of ₹118.02 lakh, yielding a final corpus of ₹413.56 lakh. While this strategy produced the largest absolute wealth accumulation, it resulted in the lowest XIRR of 12.32%, demonstrating that higher contributions do not automatically equate to superior percentage-based performance metrics. ## The XIRR and Corpus Paradox Data indicates that regular SIPs consistently delivered higher XIRR figures compared to both fixed and variable top-up methods across all tested time horizons. For instance, over 20 years, the regular SIP achieved 10.81%, whereas fixed and variable top-ups returned 10.72% and 10.54% respectively, highlighting the inverse relationship between total capital and annualized returns. ## Sustainability of Investment Top-ups The primary objective for investors should be selecting a top-up amount that remains sustainable as their income grows over time. Rather than chasing the highest possible XIRR, investors must balance their capacity to increase contributions with the goal of building a larger final corpus to meet long-term financial objectives and inflation. ## Benchmark Performance and Limitations The analysis utilizes the BSE Sensex TRI as a performance benchmark for mutual fund schemes. These figures represent index-level returns rather than the actual performance of specific mutual fund products. Investors should recognize that index benchmarks provide a theoretical framework and do not account for expense ratios or specific fund management strategies. ## Strategic Decision Making Factors Choosing between fixed and variable top-ups requires assessing personal cash flow stability. Fixed top-ups provide predictability, whereas variable top-ups align better with percentage-based salary increments. Both methods effectively increase the absolute size of the final corpus, provided the investor maintains the discipline to continue the increased contributions throughout the entire investment duration. ## Professional Guidance and Compliance This analysis serves purely for educational purposes and does not constitute formal investment advice. Market participants should consult with a SEBI-registered advisor before adjusting their SIP strategies. Understanding the mechanics of top-ups is essential for aligning personal financial planning with broader market trends while ensuring individual risk tolerance and long-term goals remain prioritized. ## Sources covering this story - https://www.livemint.com/money/personal-finance/regular-vs-step-up-sips-do-1-000-and-10-annual-top-ups-give-you-higher-xirr-returns-or-just-create-a-larger-corpus-11792212006353.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._