Real Rate of Return refers to the return that you earn after netting off the impact of inflation.
Real Rate of Return = (1+Nominal Rate)/(1+Inflation Rate)-1
Inflation 5.55%
Real Rate of Return
Investment Avenue | Returns | Real rate of return |
---|---|---|
FD* | 7.28% | 1.64% |
PPF* | 8.52% | 2.81% |
Mutual Funds* | 16.30% | 10.18% |