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🧠 Did You Know? Your SIP Only Works If It Beats Inflation!

  • Anuradha Mishra
  • Dec 5
  • 2 min read

Why smart investing is not just about returns—but about protecting your future purchasing power.

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We often hear that a ₹10,000 monthly SIP can create a strong financial future. And it’s true—SIPs are one of the best tools for wealth creation. But there’s a hidden truth that many investors overlook:


👉 Your SIP must beat inflation, otherwise your “crore” will not be worth a crore in the future.


Let’s break it down with real numbers.

🔢 Basic SIP Calculation (The Usual Story)

Most people begin their investment journey with a simple plan:

  • Monthly SIP: ₹10,000

  • Tenure: 20 years

  • Expected Returns: 12%

  • Final Corpus: ~₹1 Crore

Sounds amazing, right?

But here’s where reality steps in…


⚠️ True Value of ₹1 Crore After 20 Years


Inflation silently eats your wealth—year after year.

At an average inflation rate of 6%,₹1 Crore today = ~₹31 Lakhs in future purchasing power.

That means your ₹1 Crore after 20 years may feel like just ₹31 Lakhs.

Your money grows, but your purchasing power drops drastically.


📉 Reality Check: Inflation Is Your Real Enemy

Here’s the real challenge every investor must understand:

  • Retail inflation: ~6%

  • Urban/Metro lifestyle inflation: 10%+(Healthcare, education, rent, daily living)

Even if you grow your wealth, inflation reduces what that money can actually buy in the future.

This is why simply doing a SIP is not enough


🚀 Normal SIP vs Step-Up SIP: The Game Changer


If you continue investing ₹10,000/month for 20 years, you may reach:

₹1 Crore (Normal SIP)

But if you increase your SIP by 15% every year:🔥 Your final corpus becomes ~₹3 Crores!

And here’s the eye-opener:

👉 ₹3 Crores future value ≈ ₹1 Crore in today’s valueNow you’re not just growing your money—you’re beating inflation.


🏆 You Finally Beat Inflation

Step-up SIPs are designed for real-life scenarios where your income gradually increases every year. By increasing your SIP contribution the same way, you ensure:


  • You protect your purchasing power

  • You build wealth faster

  • You stay ahead of inflation

  • You achieve your financial goals comfortably


🎯 What Should You Do Next?


If you want to actually retain your wealth, not just accumulate numbers on paper:

✔ Start a SIP

✔ Step-up your SIP every year (10–20%)

✔ Review your portfolio annually

✔ Stay consistent, no matter the market

✔ Focus on real returns (inflation-adjusted), not just returns


💬 Final Thought

Your ₹10,000 SIP can truly change your future…But only if it beats inflation.

Smart investing is not about how much you save, It’s about how much your money retains its value in the future.

That’s where Infinity Finserv guides you—Helping you invest with a plan, discipline, and inflation-proof strategies.


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