n NISM Certifications
NSM General NISM
Medium

In the ZFunds app Step-Up SIP example, if you start with ₹5,000 and apply ₹1,000 step-up, what will be your SIP amount in the third year?

Practice question from C2 - Test Your Knowledge — bank. The correct answer is highlighted below with a full explanation.

Options

  1. ₹7,000

    Correct answer

  2. B

    ₹6,000

  3. C

    ₹5,000

  4. D

    ₹8,000

Why this is the answer

With Step-Up SIP, the investment amount increases annually by the selected step-up value. Starting at ₹5,000 with ₹1,000 step-up: Year 1 = ₹5,000, Year 2 = ₹6,000, Year 3 = ₹7,000, and so on. This helps clients reach their financial goals faster.

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