Why Inflation Matters
Inflation is the silent wealth killer. At 6% inflation, ₹1 lakh today will buy only what ₹56,000 buys you a decade from now. If your investments earn 7% in an FD but inflation runs at 6%, your real return is a measly 1%. That's why long-term money must stay in instruments that historically beat inflation – equity mutual funds, real estate and gold – rather than pure fixed-income products.
Formula
Future Value = Present × (1 + inflation)^years
Frequently Asked Questions
What is India's average inflation?
Retail CPI inflation in India has averaged around 6% over the last 15 years.
How can I beat inflation?
Keep long-term money in equity mutual funds, stocks, REITs and gold which historically outpace inflation.