The Money Illusion
If you have ₹1,00,000 in a Fixed Deposit earning 7% interest, you'll have ₹1,07,000 next year. You made money, right? Wrong.
Understanding Real Returns
If inflation (the rising cost of goods) is 6%, then things that cost ₹1,00,000 today will cost ₹1,06,000 next year. Your "Real Return" is only 1%.
If inflation spikes to 8%, your 7% FD has a negative real return of -1%. Your purchasing power is actively decreasing while your money sits in the bank.
Beat Inflation with Equities
This is why investing in growth assets like Stocks and Mutual Funds is critical. MapMyWealth helps you track the historical performance of your investments against major benchmarks to ensure your wealth is actually growing faster than inflation.