At 6% inflation, expenses double in 12 years, triple in 20 years. Inflation Rate in India averaged 5.77 percent from 2012 until 2025,
Over the last 4 decades Consumer Price Index (CPI) Inflation in India has averaged at 7.71% per year.
Equities are an asset class than can help investors stay ahead of inflation. Gold is a hedge against inflation and currency risk.
India has the highest 5-year average* medical cost Inflation at ~11%, exceeding the global average of ~10%, reflecting a significant challenge for healthcare affordability.
Inflation is a hidden Enemy of your wealth. A hybrid strategy buffers against volatility.
Standard deviation is used as an Indicator to measure market volatility i.e. measuring how widely prices are dispersed from the average price.
If prices vary in a narrow range, then standard deviation will have a low value which means low volatility. Conversely, if prices vary in a large range, then standard deviation will have a high value which means high volatility.
Hybrid Strategies are less volatile than pure equity strategies.
Equity represents shares of ownership in a company. They have a potential for capital growth with high volatility
Debt represents fixed Income/bonds which means loan given to a borrower for a specified time period in return of regular interest payments, They have a potential for stable growth with low volatility
All charts are from the HDFC Mutual Funds's handbook - 'Managing Wealth at Retirement'