Archive · 19 Jul 2026
Rule of 1% Upgrade Boosts Retirement Savings
Many people invest a fixed amount each month through a Systematic Investment Plan (SIP) but don't increase it over time.
Mirae Asset Mutual Fund suggests a new strategy called the 'Rule of 1% Upgrade.'
Instead of just increasing the SIP amount by 1% each year, investors should increase the percentage of their income that goes into investments by 1% each year.
For example, if you invest 10% of your income now, next year you invest 11%, and so on.
This small change can lead to a much larger retirement savings over time.
The article compares the two methods and shows that the 1% Upgrade Rule results in a bigger retirement fund.
Investors often stick to a fixed SIP amount without increasing it over time.
Mirae Asset Mutual Fund introduced the 'Rule of 1% Upgrade' to increase the percentage of income invested each year.
The 1% Upgrade Rule involves increasing the investment allocation by 1 percentage point of income annually.
A 1% increase in SIP amount leads to a smaller retirement corpus compared to the 1% Upgrade Rule.
Over 25 years, the 1% Upgrade Rule results in a significantly larger retirement corpus.
- Who
- Investors using Systematic Investment Plans (SIPs)
- What
- Comparison of 1% increase in SIP amount vs. 1% Upgrade Rule
- When
- Over a 25-year investment period
- Where
- India
- Why
- To maximize retirement savings
1% Increase in SIP Amount
1% Upgrade Rule
Investment Growth
1% Increase in SIP Amount
The SIP amount increases marginally each year, leading to a smaller total investment and retirement corpus.
1% Upgrade Rule
The investment amount increases by a full percentage point of income each year, resulting in a larger total investment and retirement corpus.
- Strategy
- Rule of 1% Upgrade
- Initial Investment
- ₹10,000 (10% of income)
- Annual Return
- 12%
- Investment Period
- 25 years
- Total Investment (1% Increase)
- ₹33.89 lakh
- Retirement Corpus (1% Increase)
- ₹1.82 crore
- Total Investment (1% Upgrade)
- ₹66 lakh
- Retirement Corpus (1% Upgrade)
- ₹2.83 crore