Are you truly getting ahead with your mutual fund investments? The numbers on your app might be misleading you. It's time to uncover the 'real' returns.
Rahul saw 15% returns, but inflation is a silent killer. Your nominal return is just raw growth. What matters is your purchasing power after inflation.
Nominal return is what funds show you. Real return is your actual gain after inflation erodes your money's value. Don't confuse growth with wealth creation!
Formula: [(1 + Nominal Return) / (1 + Inflation Rate)] - 1. Priya's 12% nominal with 6% inflation is actually only 5.66% real return. Huge difference!
Expense Ratios (fund management fees) and Capital Gains Tax further reduce your real earnings. These hidden costs often go unnoticed but significantly impact returns.
Opt for Direct Plans, stay invested long-term for better tax efficiency, and implement Step-Up SIPs. These strategies actively boost your post-inflation returns.
Ready to truly understand your wealth? Use our Goal SIP & Step-Up Calculators to plan smart investments and beat inflation. Visit sipplancalculator.in now!