Key Takeaway
An inflation-adjusted SIP increases the monthly amount by 6–8% annually (matching inflation). This ensures your real investment value doesn't erode, maintaining constant purchasing power throughout the SIP tenure.
50,45,760
28,38,820
22,06,940
SIP nominal growth vs Inflation Adjusted Purchasing Power
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Frequently Asked Questions
What is an inflation-adjusted SIP?
It is a calculation that adjusts your future SIP maturity corpus for inflation, showing you the real purchasing power of your future wealth in today's terms.
Why should I adjust my SIP for inflation?
Inflation erodes purchasing power. A ₹50 Lakhs nominal corpus in 15 years sounds large, but at 6% inflation, its purchasing power is equivalent to just ₹31 Lakhs today. Planning without inflation leads to savings shortfalls.
How does inflation impact retirement planning?
Retirement expenses will rise due to inflation. If you need ₹50,000/month today, you will need ₹1.2 Lakhs/month in 15 years to maintain the same lifestyle. Your target corpus must be inflation-adjusted.
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