Fixed-income options like PPF often fail to beat inflation meaningfully — equity is what actually builds real, long-term wealth.
Tejas Shah
Proprietor of Silicon One and Silicon Systems, AMFI-registered Mutual Fund Distributor since 2004, based in Vadodara.
Equity looks risky over short periods, but over ten, twenty, or thirty years it's the only realistic way to earn enough for a comfortable future. Many Indians default to fixed-income options like PPF for retirement savings — but these often grow only just fast enough to keep pace with rising prices, leaving no real gain.
The numbers over 20 years
Indian equity mutual funds have generated average annual returns north of 17% over the last two decades. Rs. 1 lakh in PPF over that period would grow to roughly Rs. 5 lakh; the same amount in an average equity fund would grow to roughly Rs. 27 lakh.
Most people miss this opportunity simply because they haven't had the right guidance and have absorbed a lot of "equity is risky" thinking without examining the numbers.
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