You Will Have to Take Higher Risks to Generate Real Returns. Here's Why⊠When it comes to growing wealth, inflation and taxation are two silent killers that erode the value of your money faster than you realize. Hereâs what most investors overlook: đč Inflation Isnât 6% for Everyone âȘïž If you live in a Tier-1/2 city, the real inflation could be closer to 10% due to higher living costs âȘïž This means your investments must generate at least 10% post-tax returns just to maintain your purchasing power. đč Taxation Adds Another Layer âȘïž Nifty50âs average returns are 12-14% annually, but once you account for taxation, the effective return barely keeps up with real inflation. âȘïž If youâre investing in FDs or other low-return products, your post-tax returns likely donât even match inflation, leading to a decline in the real value of your money. So, whatâs the solution? đč Take Calculated Risks âȘïž To generate real returns, investors must look beyond traditional products and take on higher risks with mid-cap, small-cap, or other alternative investments. âȘïž These asset classes can provide the potential for higher returns to outpace inflation and taxation. đč Seek Professional Guidance âȘïž This is where a good professionalâwhether itâs an RIA (Registered Investment Advisor) or MFD (Mutual Fund Distributor)âcan add immense value. âȘïž They help you build a portfolio that balances higher returns with risk management and ensures you stay on track toward your financial goals. Are your investments beating inflation and taxes? If not, itâs time to reassess your strategy. You can checkout SimpliFin's AlphaIQ feature to generate a diversified portfolio that helps you generate real returns (Download Link - https://onelink.to/9r75pv)
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