Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
The real rate of return is the investment return adjusted for inflation, reflecting the actual increase in purchasing power.
Your actual gain in buying power after accounting for rising prices (inflation).
Approximated as nominal return minus inflation rate; a low-yield fixed deposit can have a negative real return if inflation exceeds the interest earned.
A 7% FD return with 6% inflation leaves only about a 1% real rate of return in purchasing power.
Real Return ≈ Nominal Return − Inflation RateYour actual gain in buying power after accounting for rising prices (inflation).
Real Rate of Return helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.