If you are considering USD depreciation, then the inflation has to be also in USD terms. Uniformity of currency to be maintained while evaluating inflation.
In the long term, near 4% real return is what is expected in stock, i.e., passive funds (including US market). Check out the book “Stock for the long run” by Jeremy Siegel. India’s performance is almost same to that of US in index investing, if adjusted against inflation/currency depreciation.
You have to consider dividend. It is a major part of total return over long term. Taxes have to be also considered.
Other than equity, all other asset classes return real negative after taxes. Hence, I don’t invest anything other than equity and for short term needs (less than 5 years) I hold in cash / liquid funds.
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