Assuming that you got about 8% interest in bank deposits over the past 10 years, and that you paid 30% tax on that. This means you got about 5.6% post tax from your bank EACH YEAR….
How much did you REALLY GET..well you got nominal return (5.6%) and the resultant inflation is here…so your real return is calculated as follows:
NOMINAL RETURN minus INFLATION….and here are the inflation figures…
CPI India 2015 6.25 % (so negative return of 0.65%)
CPI India 2005 4.25 %
CPI India 2014 6.37 %
CPI India 2004 3.77 %
NOW CALCULATE THE INTEREST THAT YOU GOT ON YOUR INVESTMENT please.
Most debt instruments would have given you very small +ve return, or more likely you MUST have got a – ve return….
See more at: http://www.inflation.eu/inflation-rates/india/historic-inflation/cpi-inflation-india.aspx#sthash.nfFsPdHu.dpuf
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