New Delhi, Oct. 17 -- If you invest through a systematic investment plan (SIP), increasing your contribution as your income and expenses rise can help you keep pace with inflation and stay on track with your financial goals. A step-up SIP allows you to increase your investment periodically by a fixed amount or a percentage.

But does increasing your SIP contribution by a fixed amount of Rs.1,000 every year improve returns and wealth creation? A comparison of regular SIPs, fixed top-up SIPs and variable top-up SIPs in the BSE Sensex TRI, based on the latest SIP Analysis report by WhiteOak Capital Mutual Fund, offers some insights.

A normal (or regular) SIP involves investing the same amount every month in a mutual fund scheme. A fixed top...