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Debt funds help beat inflation
Sample this. You earn a return of six per cent per annum on savings account deposit today. This means that your money would grow from a Rs 100 to Rs 106 if you kept it in your savings account for a year. Say inflation stands at 7.5 per cent. This means that what you could buy for Rs 100 one year back, can now be bought at Rs 107.50. As a result, your real return (pre-tax returns minus inflation) is