Retirement planning: Why the rule of 1% upgrade works better than a 1% increase in SIP amount
New Delhi, July 19 -- Many investors start a systematic investment plan (SIP) with a fixed amount and continue contributing the same amount for years without reviewing it, even as their salary grows. Over time, this could result in investing a smaller proportion of income than originally intended.
Mirae Asset Mutual Fund, in the latest edition of its M-FinBytes, has introduced the "Rule of 1% Upgrade," a simple strategy in which investors increase their SIP allocation by just one percentage point of income every year.
According to the fund house, "The Rule of 1% Upgrade is not about making a dramatic jump. It is a yearly nudge: increase the share of income directed towards investments by one percentage point, subject to affordability, f...
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