Is Inflation Eating Your Money

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What happens if your investment after tax is not able to beat inflation ?

Dear Investors, Your money is not safe... even in a bank. Inflation nibbles at its value every day, eroding the purchasing power of your wealth. The value erosion will be greater if you have cash lying in a locker, but even in a savings bank account, it loses value. If you have Rs 10,000 cash with you, it will loose its value to Rs 6,806 after 5 years wherein inflation is considered at 8%. Below is the chart showing the effect of inflation on your wealth at different inflation rates for different time horizons.

Beat Inflation with Equity SIP

Keeping all the general scenarios of investment in consideration.   It is often said that a diversified portfolio is a good hedge against volatility, but it can also be your shield against inflation. Do not shy away from volatile assets such as equity oriented mutual funds if you want to stay ahead of consumer prices. Even the most risk-averse investor should have at least 10-15% in equities. A 100% debt portfolio will always lag behind the inflation rate.   Here is the list of investment options and their returns. Ideally you should go for equity based SIP because it will not only beat inflation but will also help create long term wealth.   Equity SIP easily create long term wealth because of its unique concept of Rupee cost averaging. You can choose to invest in SIP at any time. SIP provides you great liquidity as well as it becomes tax free after 1 year.

TO PLAN A SIP CONTACT US   +91-9582012572   ADD US ON WHATSAPP FOR LATEST UPDATES   If interested call us on: Mukesh Gupta  +91-9810184368 B Com, FCA, CPFA, CFP^CM  Director Or Prabhakar Sharma +91-9899835232 CFP^CM, CWM Wealthcare Securities Pvt. Ltd. A 54 A, Lower Ground Floor, Lajpat Nagar- II, New Delhi-110024 Give us a Missed call on +91-98710 90316 to arrange a call back from our office Do Whatsapp +91-9582012572  Telephone No 011- 4657 5550 (Five lines) sa...@wealthcareindia.com  www.wealthcareindia.com