46: Why it’s important to look at real returns

Real returns factor in inflation and other crucial elements such as taxes. It’s important your investments make real returns if you want your wealth to grow. Retail inflation rose to 4.62% early this month and is expected to inch upwards. While for the policymakers who are looking to cut policy rates to boost investments this presents a challenge as it would only add to the inflationary pressures, investors too need to worry as inflation can eat into their investment returns.