SIP or Systematic investment plan that inculcates discipline to your investment regime should be regularly stepped up i.e a certain amount should be gradually and systematically increased towards the investment option. And it is best if you start with it early in your career.
The idea must be followed such that your investments are in line with your investment goals and you are able to accomplish them in a time-efficient manner.
Inflation: Another good enough reason to increase your funds in the chosen SIP is to offset another economic demon of inflation which erodes real value of money by substantial measure. The average inflation for the last 20 years stood at 6.54% and Rs. 100 in the year 1997 has lost in value today to Rs. 29 which means goods that were available for Rs. 29 in 1997 are valued at Rs. 100.
Helps in wealth creation: Long term investment objectives such as education planning for your children, creation of a retirement corpus for your sunset years can well be reached by stepping up the investment.
Understanding with an illustration: Say you started with a SIP of Rs. 2000 to arrange funds appx Rs. 5 lakhs for the down payment of your dream home in next 10 years time when you were aged 22 and drew Rs. 20,000 as monthly salary (CAGR of selected SIP is 12%). Now, there is a high chance that over the next few years, your take home salary increase and accordingly you can increase your investment in this as otherwise it would not be possible to reach the goal in the said time.
So, if you increase your investment by another Rs. 2000, then you will be able to realize the goal well within the time frame.
For the stepping up of your investments towards SIP either you can give your consent to the mutual fund distributor, bank or AMC to increase the investment by some fixed percentage or do it manually in the other case if you happen to invest through some other channel.
Know the different options to invest in mutual funds, here.