What are your thoughts?
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With Nifty averaging 12% returns over 15 years, isn't inflation my biggest worry? The 6.5% return on my fixed deposit barely keeps pace with taxes and the 5% inflation rate. Should I really fear market dips when my "safe" savings are actually shrinking in value every single day?
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FDs feel safe, but a 6.5% return in 2026, after taxes, often means just 4.5% for you. With 5% inflation, your buying power is decreasing. The real risk isn’t losing money in the market; it’s running out of money because it isn’t growing.
You're right that both inflation and taxes can lower fixed deposit returns. While the Nifty’s 12% CAGR generally beats inflation, it can be unpredictable in the short run.A smart plan is to put your emergency money in fixed deposits and use any extra cash each month to buy stocks or index funds. Staying invested during market falls tends to be more useful than letting 'safe' funds lose value yearly.
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