Step Up SIP means thar every year you will increase your SIP amount by ceratin percentage like 5% or 10%. For example, if you are doing SIP of Rs 10K every month, 10% Step Up means from the next year you will be doing an SIP of Rs 11K and so on. This is the best way to automatically increase your SIP amount without your intervention.
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So it's actually a good thing because then you don't have to worry about increasing the SIP and it automatically taken care of. Now the question is should you invest using the Step Up SIP or you will directly invest whenever the market is down. For example, you invest Rs 10K everymonth and then you have setup an Step Up SIP of 10%. So from next year onwards you will be investing Rs 11K. But at the same time you have some extra cash with you every month, what you will do. The best option is to invest that too if that is extra.
So a lot of people save that extra amount and then whenever the market is down like now, they invest in the market. In this way they are doing lumpsum along with the SIP. So in my case I am doing all the three. I have a SIP running, I have setup the Step UP SIP of 10% and along with thar whenever market gives me opportunity, I invest some amount which is over and above my normal SIP. Like in some months my needs are lower then that money will get invested in the market as a lumpsum investment.
In this way I am making my expenses balance sheet equal that means if I am earning Rs 10 and my expense + investment comes to Rs 8 then I will invest Rs 2 more to make the expense + investment to 10. And this way my portfolio is growing slowly and steadily.
