Education and medical inflation in India runs at 8–12% annually, much higher than general CPI. If you target today's cost without adjustment, you'll be significantly underfunded. Always inflate your goal amount.
Lumpsum vs SIP — which is better for goals?
For long-term goals (7+ years), SIP reduces timing risk through rupee-cost averaging. For short goals (<3 years), a lump sum in a liquid/debt fund may be more appropriate.
How do I set a realistic return assumption?
For equity mutual funds in India, 12% is a conservative 15-year assumption. For debt funds, use 7–8%. For hybrid funds, 10% is reasonable. Never use past 3-year returns as a predictor.
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