Investment return after adjusting for inflation. Formula: (1 + nominal return) / (1 + inflation rate) - 1. If FD returns 7% and inflation is 6%, real return ≈ 0.94%. Equity has historically provided 6–8% real returns in India over long periods.
What is Real Return?
Investment return after adjusting for inflation. Formula: (1 + nominal return) / (1 + inflation rate) - 1. If FD returns 7% and inflation is 6%, real return ≈ 0