Projections are estimates based on the inputs you provide. Actual results will vary based on market performance, life events, and changes to your financial strategy. These projections should be used as a guide rather than a guarantee.

For Indian investors, a diversified portfolio might yield 10-12% annually over the long term. Equity mutual funds have historically returned 12-15%, while fixed income instruments like PPF offer 7-8%. Your actual returns depend on your asset allocation and market conditions.

Inflation reduces the purchasing power of your money over time. If your investments return 12% annually but inflation is 6%, your real return is only 6%. The projection chart shows nominal values, but remember that future amounts will have less purchasing power.

Yes, ideally your contributions should increase at least with inflation to maintain the same purchasing power. If your income grows faster than inflation, increasing contributions even more will accelerate wealth building.

Nominal returns are the percentage increase in your investment value. Real returns are nominal returns minus inflation. For example, if your investment grows 12% and inflation is 6%, your real return is approximately 6%.

Review your projection at least annually, or whenever you have significant financial changes (job change, inheritance, large purchases). Regular reviews help you stay on track and adjust your strategy as needed.

For long-term wealth building in India, consider a mix of equity mutual funds (especially index funds), PPF for debt allocation, real estate (for diversification), and direct equity in quality companies. The exact allocation should match your risk tolerance and time horizon.

Taxes can significantly reduce your investment returns. In India, long-term capital gains on equities (held over 1 year) are taxed at 10% above ₹1 lakh, while short-term gains are taxed at 15%. Debt funds have different tax treatment. Consider tax-efficient investments to maximize after-tax returns.

This represents how much you expect to increase your annual contributions each year. If you set it to 5%, and you contribute ₹2 lakh this year, next year you would contribute ₹2.1 lakh, then ₹2.205 lakh the following year, etc.

Compounding means your investment returns generate their own returns over time. For example, if you invest ₹10,000 at 12% annual return, after one year you have ₹11,200. The next year, you earn 12% on ₹11,200, not just the original ₹10,000. Over decades, this creates exponential growth.

While this varies widely, general guidelines suggest having 1x your annual salary by age 30, 3x by 40, 6x by 50, and 8x by 60. However, focus more on your personal goals and progress than comparing to others.

Yes, your primary residence is an asset and should be included in net worth calculations. However, for retirement planning, consider that you may need to live in it, so it might not generate income or be easily converted to cash.

To accelerate net worth growth: 1) Increase your savings rate, 2) Invest in growth assets like equities, 3) Minimize debt, especially high-interest debt, 4) Continuously improve your earning potential, 5) Avoid lifestyle inflation as your income grows.

An emergency fund (3-6 months of expenses) protects your investments during financial setbacks. While it may earn lower returns, it prevents you from selling investments at a loss during emergencies, ultimately protecting your long-term net worth.

As you approach retirement, gradually shift from growth assets to more stable investments to protect your wealth. However, maintain some growth assets to combat inflation during retirement. Also focus on creating multiple income streams beyond your investments.