You can. But every year you do, it buys you a little less. Here's what's actually happening to your money — and what you can do about it.
A 25-year-old from Pune who just got her first job.
Ananya saves ₹10,000 every month and puts it in a savings account earning 3.5% interest. She feels safe. Her money is growing.
But here's the problem nobody told her about: inflation in India runs at around 6–7% per year. That means every year, things cost 6–7% more than they did last year.
Her savings account pays her 3.5%. Inflation takes away 7%. She is losing 3.5% of her purchasing power every single year — even though the number in her bank account is going up.
Drag the slider to see 3 possible futures for her money.
Loses ~7% purchasing power per year. What buys a bag of groceries today will buy half a bag in 10 years.
Earns ~3.5% but inflation eats ~7%. You're still losing ground, just more slowly. Not a solution.
Nifty 50 has averaged ~12% CAGR since inception. Not guaranteed, but historically the only inflation-beating option.
Yes — and so is not investing. Keeping your money in cash is a guaranteed slow loss. Investing in a diversified index fund over 10+ years has historically recovered from every crash and delivered positive returns.
No. You can start a Nifty 50 index fund SIP for as little as ₹500/month. The amount matters less than starting early — the chart above proves this.
CAGR means Compound Annual Growth Rate — the average yearly return if you had stayed invested. Nifty 50 TRI (Total Return Index) has delivered ~12.5% CAGR since 1999. Past performance isn't guaranteed, but it's the best data we have.
Before investing a single rupee, you need two safety shields in place. Skip this step and an emergency could force you to sell your investments at a loss.
Next: Build Your Safety Net →