6l crores is the impact

Top headlines in all newspapers today - the impact of inflation on the population is rs 6 l crores.

Quite an impact on our household budgets.

However, we need to ensure the following In our financial plans whether we do it or we get it done by a financial planner

1. Ensure that the future expectations of inflation are properly calculated. Usually financial planners take 5% as projected inflation rate. This doesn't hold good anymore. We should be considering at least an 8% inflationary expectations for the next 5 years.

2. Evaluate your investment strategies basis the new calculations. A 3% increase In inflation will have a significant impact on our our retirement , education planning and house planning. This may involve you increasing your exposure to higher risk categories.

3. Evaluate which is the portfolio to invest in. With growth being in the declining phase in India, we should evaluate if equity is really the place to invest in vs debt or commodities

It's going to be a big change in our investment philosophies.

Start thinking and planning now

Happy(?) investing

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