Your Shield Against Inflation: Long Term SIP Investment Through MINTIT’s Mutual Fund Mobile App

Do you remember when a litre of milk cost just ₹20 or when that post-work roadside chai was only ₹5 a cup? Or when a movie ticket didn’t burn a hole in your pocket at under ₹100? Fast forward to today, everything costs nearly double. That’s inflation at play as a silent pickpocket that robs your money’s power while you barely notice. By the time you do, your wealth has quietly shrunk in value.

The harsh truth? While money sits idle in your savings account, inflation is busy reducing its worth. Over the years, it eats away at your wealth bit by bit, almost like termites nibbling at strong wood until only hollow shells remain.

What is Inflation?

At its core, inflation is the rise in prices of goods and services. When inflation occurs, money loses purchasing power. If inflation is 6% per year, something worth ₹100 today will cost about ₹179 in a decade. Think back: ₹500 in 2010 could fill your grocery bag. Today, the same ₹500 barely covers half that list. In short, the money that isn’t growing is actually shrinking.

Picture this, you’re diligently saving money every month, but your grandparents casually remark, “Back in our day, ₹1 lakh was a fortune. Today, it won’t even get you a decent car.” Ouch. Doesn’t that hit hard? It makes you wonder: Will the money you save today even hold the same value tomorrow?

Most people park money in a savings account or fixed deposit, thinking it’s “safe.” But here’s the catch, safety doesn’t always mean growth. As per RBI data, India’s average inflation rate (2000–2024) has been 5.9% per year. That means in 10 years, inflation alone can wipe out nearly half your buying power. Over 20–30 years, the damage is even scarier.

Your bank may grow your money at 3–5%, but inflation races at 6% or more. End result? You’re poorer in real terms. The antidote isn’t just saving, it’s investing smartly.

How to Beat Inflation

Here’s the silver lining, you can absolutely beat inflation by making your money work harder than it. According to AMFI, equity mutual funds in India have delivered 12–15% CAGR over the past 20+ years. That’s double (and sometimes triple) inflation.

And the simplest way to ride that growth is through SIPs (Systematic Investment Plans). With SIPs, you invest small amounts regularly and let compounding do the heavy lifting. For instance, a ₹10,000 monthly SIP at 12% CAGR for 20 years grows to ₹1 crore. At 15% CAGR, it grows to ₹1.51 crore. The difference isn’t in magic, it’s in math and consistency. This is the power of a long-term SIP investment, where time is your biggest ally.

Here’s a fun fact: SIP investment is safe compared to market timing because it averages out ups and downs. Whether markets rise or fall, you’re steadily building wealth.

Take this example: A ₹5,000 monthly SIP in equity mutual funds at 12% average returns grows to ₹11.6 lakhs in 10 years and to a jaw-dropping ₹50 lakhs in 20 years. Compare this to simply saving ₹5,000 in your bank account for 10 years, you’d only have ₹6 lakhs, with a measly ₹82,000 in interest.

That’s the difference between just saving and actually investing. And for those just starting out, SIP investment for beginners is the most convenient and disciplined entry point into wealth creation.

Flexibility of Mutual Funds

Mutual funds aren’t just about discipline, they’re about flexibility too. With features like Step-Up SIPs, you can increase your investment by 10% annually in line with salary hikes or bonuses. That small tweak can multiply your corpus massively. Plus, with today’s platforms, you can invest in mutual funds online within minutes. Whether you want to start a ₹500 SIP or scale up, it’s seamless, safe, and completely paperless.

So the next time you pick up a packet of milk or book movie tickets, remember this: the prices will only go up. The only shield you have against inflation’s silent attack is planning early and investing wisely.

MINTIT, India’s dedicated Mutual Fund Platform which caters to your personalised goals and accompanies you to achieve your financial milestones is eager to help you build your wealth. Depending on your profile it can precisely suggest tailored investing plans to achieve your goals through best suited mutual funds. Sign up to MINTIT now and start your mutual funds investment journey under professional guidance.