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    Home»Mutual Funds»Mutual Fund Return vs Inflation: How large inflation-adjusted corpus 25-year-old may generate on Rs 10 lakh investment by 60 years of age
    Mutual Funds

    Mutual Fund Return vs Inflation: How large inflation-adjusted corpus 25-year-old may generate on Rs 10 lakh investment by 60 years of age

    August 7, 2025


    Mutual Fund Return vs Inflation: A 1 lakh lump sum investment at a 12 per cent annualised return creates an estimated corpus of Rs 17 lakh in 25 years! But adjusted against a 6 per cent inflation, the estimated value of the same investment is just Rs 3,96,100 in today’s terms. Investment eats up a large portion of your investment. Long-term investment returns that may look impressive on paper may appear to be faded realities of themselves when adjusted against inflation.

    How inflation impacts your investment returns and how large a corpus a 25-year-old investor may generate through a Rs 10 lakh lump sum investment by 60 years of age when their annualised investment returns are 12 per cent to 15 per cent and inflation rates are 4 per cent to 6 per cent, see our estimates to know!

    Investment return vs inflation 

    See the example of an Rs 5 lakh investment at a 12 per cent annualised return in 25 years without adjusting to a 6 per cent inflation and after adjusting to it. 

    Amount- Rs 5,00,000

    Investment return- 12 per cent

    Inflation- 6 per cent 

    Real rate of return= (1+investment return %)/(1+inflation rate%) X 100

    =(1+12%)/(1+6%) X 100

    = 5.66 per cent

    Investment duration= 25 years

    Investment value without inflation= Rs 85,00,032.20

    Investment value with inflation= Rs 19,80,495.86

    You can see the stark difference between the two figures. 

    Benefit of calculating inflation-adjusted corpus

    When you calculate a corpus adjusted to inflation, you get the present value of that investment. It helps you target the exact amount you may require to achieve your financial goals. 

    Calculation conditions for story

    Investment= Rs 10,00,000

    Investment returns= 12 per cent-15 per cent

    Inflation rate= 4 per cent-6 per cent

    Corpus generated (without inflation)= ?

    Corpus generated (inflation-adjusted value)= ?

    Corpus value (Investment Rs 10 lakh, investment return 12%, inflation 4%-6%)

     

    Age End of year Corpus value (at 12% return) Inflation-adjusted value (at 4% inflation) Inflation-adjusted value (at 5% inflation) Inflation-adjusted value (at 6% inflation)
    26 1 ₹1,120,000 ₹1,076,923 ₹1,066,667 ₹1,056,604
    27 2 ₹1,254,400 ₹1,159,763 ₹1,137,778 ₹1,116,412
    28 3 ₹1,404,928 ₹1,248,976 ₹1,213,630 ₹1,179,605
    29 4 ₹1,573,519 ₹1,345,051 ₹1,294,538 ₹1,246,375
    30 5 ₹1,762,342 ₹1,448,516 ₹1,380,841 ₹1,316,924
    31 6 ₹1,973,823 ₹1,559,941 ₹1,472,897 ₹1,391,467
    32 7 ₹2,210,681 ₹1,679,936 ₹1,571,090 ₹1,470,229
    33 8 ₹2,475,963 ₹1,809,162 ₹1,675,829 ₹1,553,450
    34 9 ₹2,773,079 ₹1,948,328 ₹1,787,551 ₹1,641,381
    35 10 ₹3,105,848 ₹2,098,200 ₹1,906,721 ₹1,734,289
    36 11 ₹3,478,550 ₹2,259,600 ₹2,033,836 ₹1,832,457
    37 12 ₹3,895,976 ₹2,433,415 ₹2,169,425 ₹1,936,181
    38 13 ₹4,363,493 ₹2,620,601 ₹2,314,054 ₹2,045,776
    39 14 ₹4,887,112 ₹2,822,186 ₹2,468,324 ₹2,161,574
    40 15 ₹5,473,566 ₹3,039,277 ₹2,632,879 ₹2,283,928
    41 16 ₹6,130,394 ₹3,273,067 ₹2,808,404 ₹2,413,207
    42 17 ₹6,866,041 ₹3,524,842 ₹2,995,631 ₹2,549,803
    43 18 ₹7,689,966 ₹3,795,983 ₹3,195,340 ₹2,694,132
    44 19 ₹8,612,762 ₹4,087,982 ₹3,408,362 ₹2,846,630
    45 20 ₹9,646,293 ₹4,402,442 ₹3,635,586 ₹3,007,760
    46 21 ₹10,803,848 ₹4,741,092 ₹3,877,959 ₹3,178,010
    47 22 ₹12,100,310 ₹5,105,791 ₹4,136,489 ₹3,357,898
    48 23 ₹13,552,347 ₹5,498,544 ₹4,412,255 ₹3,547,967
    49 24 ₹15,178,629 ₹5,921,509 ₹4,706,406 ₹3,748,796
    50 25 ₹17,000,064 ₹6,377,010 ₹5,020,166 ₹3,960,992
    51 26 ₹19,040,072 ₹6,867,549 ₹5,354,844 ₹4,185,199
    52 27 ₹21,324,881 ₹7,395,822 ₹5,711,833 ₹4,422,097
    53 28 ₹23,883,866 ₹7,964,731 ₹6,092,622 ₹4,672,404
    54 29 ₹26,749,930 ₹8,577,403 ₹6,498,797 ₹4,936,880
    55 30 ₹29,959,922 ₹9,237,203 ₹6,932,050 ₹5,216,326
    56 31 ₹33,555,113 ₹9,947,757 ₹7,394,187 ₹5,511,590
    57 32 ₹37,581,726 ₹10,712,969 ₹7,887,133 ₹5,823,566
    58 33 ₹42,091,533 ₹11,537,044 ₹8,412,942 ₹6,153,202
    59 34 ₹47,142,517 ₹12,424,509 ₹8,973,804 ₹6,501,497
    60 35 ₹52,799,620 ₹13,380,240 ₹9,572,058 ₹6,869,506

     

    Corpus value (Investment Rs 10 lakh, investment return 13%, inflation 4%-6%)

     

    Age End of year Corpus value (at 13% return) Inflation-adjusted value (at 4% inflation) Inflation-adjusted value (at 5% inflation) Inflation-adjusted value (at 6% inflation)
    26 1 ₹1,130,000 ₹1,086,538 ₹1,076,190 ₹1,066,038
    27 2 ₹1,276,900 ₹1,180,566 ₹1,158,186 ₹1,136,436
    28 3 ₹1,442,897 ₹1,282,730 ₹1,246,429 ₹1,211,484
    29 4 ₹1,630,474 ₹1,393,736 ₹1,341,395 ₹1,291,488
    30 5 ₹1,842,435 ₹1,514,347 ₹1,443,596 ₹1,376,775
    31 6 ₹2,081,952 ₹1,645,397 ₹1,553,584 ₹1,467,694
    32 7 ₹2,352,605 ₹1,787,787 ₹1,671,953 ₹1,564,617
    33 8 ₹2,658,444 ₹1,942,499 ₹1,799,340 ₹1,667,941
    34 9 ₹3,004,042 ₹2,110,600 ₹1,936,432 ₹1,778,088
    35 10 ₹3,394,567 ₹2,293,248 ₹2,083,970 ₹1,895,509
    36 11 ₹3,835,861 ₹2,491,702 ₹2,242,749 ₹2,020,684
    37 12 ₹4,334,523 ₹2,707,330 ₹2,413,625 ₹2,154,125
    38 13 ₹4,898,011 ₹2,941,619 ₹2,597,520 ₹2,296,379
    39 14 ₹5,534,753 ₹3,196,182 ₹2,795,426 ₹2,448,026
    40 15 ₹6,254,270 ₹3,472,774 ₹3,008,411 ₹2,609,689
    41 16 ₹7,067,326 ₹3,773,303 ₹3,237,623 ₹2,782,026
    42 17 ₹7,986,078 ₹4,099,839 ₹3,484,299 ₹2,965,745
    43 18 ₹9,024,268 ₹4,454,632 ₹3,749,770 ₹3,161,596
    44 19 ₹10,197,423 ₹4,840,129 ₹4,035,466 ₹3,370,381
    45 20 ₹11,523,088 ₹5,258,987 ₹4,342,931 ₹3,592,953
    46 21 ₹13,021,089 ₹5,714,091 ₹4,673,821 ₹3,830,224
    47 22 ₹14,713,831 ₹6,208,580 ₹5,029,921 ₹4,083,163
    48 23 ₹16,626,629 ₹6,745,861 ₹5,413,153 ₹4,352,806
    49 24 ₹18,788,091 ₹7,329,638 ₹5,825,584 ₹4,640,255
    50 25 ₹21,230,542 ₹7,963,933 ₹6,269,438 ₹4,946,687
    51 26 ₹23,990,513 ₹8,653,120 ₹6,747,109 ₹5,273,355
    52 27 ₹27,109,279 ₹9,401,947 ₹7,261,175 ₹5,621,596
    53 28 ₹30,633,486 ₹10,215,577 ₹7,814,407 ₹5,992,833
    54 29 ₹34,615,839 ₹11,099,618 ₹8,409,791 ₹6,388,586
    55 30 ₹39,115,898 ₹12,060,162 ₹9,050,537 ₹6,810,474
    56 31 ₹44,200,965 ₹13,103,829 ₹9,740,101 ₹7,260,222
    57 32 ₹49,947,090 ₹14,237,815 ₹10,482,204 ₹7,739,671
    58 33 ₹56,440,212 ₹15,469,933 ₹11,280,848 ₹8,250,781
    59 34 ₹63,777,439 ₹16,808,677 ₹12,140,342 ₹8,795,644
    60 35 ₹72,068,506 ₹18,263,274 ₹13,065,320 ₹9,376,489

     

    Corpus value (Investment Rs 10 lakh, investment return 14%, inflation 4%-6%)

     

    Age End of year Corpus value (at 14% return) Inflation-adjusted value (at 4% inflation) Inflation-adjusted value (at 5% inflation) Inflation-adjusted value (at 6% inflation)
    26 1 ₹1,140,000 ₹1,096,154 ₹1,085,714 ₹1,075,472
    27 2 ₹1,299,600 ₹1,201,553 ₹1,178,776 ₹1,156,639
    28 3 ₹1,481,544 ₹1,317,087 ₹1,279,813 ₹1,243,933
    29 4 ₹1,688,960 ₹1,443,730 ₹1,389,512 ₹1,337,815
    30 5 ₹1,925,415 ₹1,582,550 ₹1,508,613 ₹1,438,782
    31 6 ₹2,194,973 ₹1,734,719 ₹1,637,922 ₹1,547,369
    32 7 ₹2,502,269 ₹1,901,519 ₹1,778,316 ₹1,664,152
    33 8 ₹2,852,586 ₹2,084,357 ₹1,930,743 ₹1,789,748
    34 9 ₹3,251,949 ₹2,284,776 ₹2,096,235 ₹1,924,823
    35 10 ₹3,707,221 ₹2,504,466 ₹2,275,912 ₹2,070,093
    36 11 ₹4,226,232 ₹2,745,280 ₹2,470,990 ₹2,226,326
    37 12 ₹4,817,905 ₹3,009,249 ₹2,682,790 ₹2,394,351
    38 13 ₹5,492,411 ₹3,298,600 ₹2,912,743 ₹2,575,057
    39 14 ₹6,261,349 ₹3,615,773 ₹3,162,407 ₹2,769,401
    40 15 ₹7,137,938 ₹3,963,444 ₹3,433,470 ₹2,978,412
    41 16 ₹8,137,249 ₹4,344,544 ₹3,727,768 ₹3,203,198
    42 17 ₹9,276,464 ₹4,762,289 ₹4,047,291 ₹3,444,949
    43 18 ₹10,575,169 ₹5,220,201 ₹4,394,201 ₹3,704,945
    44 19 ₹12,055,693 ₹5,722,143 ₹4,770,847 ₹3,984,563
    45 20 ₹13,743,490 ₹6,272,349 ₹5,179,777 ₹4,285,285
    46 21 ₹15,667,578 ₹6,875,460 ₹5,623,758 ₹4,608,703
    47 22 ₹17,861,039 ₹7,536,562 ₹6,105,794 ₹4,956,529
    48 23 ₹20,361,585 ₹8,261,231 ₹6,629,148 ₹5,330,607
    49 24 ₹23,212,207 ₹9,055,580 ₹7,197,360 ₹5,732,917
    50 25 ₹26,461,916 ₹9,926,309 ₹7,814,277 ₹6,165,590
    51 26 ₹30,166,584 ₹10,880,762 ₹8,484,072 ₹6,630,918
    52 27 ₹34,389,906 ₹11,926,989 ₹9,211,278 ₹7,131,364
    53 28 ₹39,204,493 ₹13,073,815 ₹10,000,817 ₹7,669,580
    54 29 ₹44,693,122 ₹14,330,913 ₹10,858,029 ₹8,248,417
    55 30 ₹50,950,159 ₹15,708,885 ₹11,788,718 ₹8,870,939
    56 31 ₹58,083,181 ₹17,219,355 ₹12,799,179 ₹9,540,444
    57 32 ₹66,214,826 ₹18,875,062 ₹13,896,252 ₹10,260,477
    58 33 ₹75,484,902 ₹20,689,972 ₹15,087,359 ₹11,034,853
    59 34 ₹86,052,788 ₹22,679,392 ₹16,380,561 ₹11,867,672
    60 35 ₹98,100,178 ₹24,860,103 ₹17,784,609 ₹12,763,345

     

    Corpus value (Investment Rs 10 lakh, investment return 15%, inflation 4%-6%)

     

    Age End of year Corpus value (at 15% return) Inflation-adjusted value (at 4% inflation) Inflation-adjusted value (at 5% inflation) Inflation-adjusted value (at 6% inflation)
    26 1 ₹1,150,000 ₹1,105,769 ₹1,095,238 ₹1,084,906
    27 2 ₹1,322,500 ₹1,222,726 ₹1,199,546 ₹1,177,020
    28 3 ₹1,520,875 ₹1,352,052 ₹1,313,789 ₹1,276,956
    29 4 ₹1,749,006 ₹1,495,058 ₹1,438,912 ₹1,385,377
    30 5 ₹2,011,357 ₹1,653,189 ₹1,575,951 ₹1,503,003
    31 6 ₹2,313,061 ₹1,828,046 ₹1,726,042 ₹1,630,617
    32 7 ₹2,660,020 ₹2,021,396 ₹1,890,426 ₹1,769,065
    33 8 ₹3,059,023 ₹2,235,198 ₹2,070,467 ₹1,919,269
    34 9 ₹3,517,876 ₹2,471,613 ₹2,267,654 ₹2,082,226
    35 10 ₹4,045,558 ₹2,733,034 ₹2,483,622 ₹2,259,018
    36 11 ₹4,652,391 ₹3,022,105 ₹2,720,157 ₹2,450,822
    37 12 ₹5,350,250 ₹3,341,750 ₹2,979,219 ₹2,658,910
    38 13 ₹6,152,788 ₹3,695,205 ₹3,262,955 ₹2,884,667
    39 14 ₹7,075,706 ₹4,086,044 ₹3,573,712 ₹3,129,591
    40 15 ₹8,137,062 ₹4,518,221 ₹3,914,066 ₹3,395,312
    41 16 ₹9,357,621 ₹4,996,110 ₹4,286,834 ₹3,683,593
    42 17 ₹10,761,264 ₹5,524,545 ₹4,695,104 ₹3,996,351
    43 18 ₹12,375,454 ₹6,108,872 ₹5,142,257 ₹4,335,663
    44 19 ₹14,231,772 ₹6,755,003 ₹5,631,995 ₹4,703,786
    45 20 ₹16,366,537 ₹7,469,474 ₹6,168,376 ₹5,103,164
    46 21 ₹18,821,518 ₹8,259,515 ₹6,755,840 ₹5,536,451
    47 22 ₹21,644,746 ₹9,133,117 ₹7,399,254 ₹6,006,527
    48 23 ₹24,891,458 ₹10,099,120 ₹8,103,944 ₹6,516,515
    49 24 ₹28,625,176 ₹11,167,296 ₹8,875,749 ₹7,069,804
    50 25 ₹32,918,953 ₹12,348,452 ₹9,721,058 ₹7,670,071
    51 26 ₹37,856,796 ₹13,654,539 ₹10,646,873 ₹8,321,303
    52 27 ₹43,535,315 ₹15,098,769 ₹11,660,861 ₹9,027,829
    53 28 ₹50,065,612 ₹16,695,754 ₹12,771,419 ₹9,794,343
    54 29 ₹57,575,454 ₹18,461,651 ₹13,987,745 ₹10,625,938
    55 30 ₹66,211,772 ₹20,414,325 ₹15,319,911 ₹11,528,140
    56 31 ₹76,143,538 ₹22,573,533 ₹16,778,950 ₹12,506,945
    57 32 ₹87,565,068 ₹24,961,118 ₹18,376,945 ₹13,568,855
    58 33 ₹100,699,829 ₹27,601,236 ₹20,127,130 ₹14,720,928
    59 34 ₹115,804,803 ₹30,520,598 ₹22,044,000 ₹15,970,818
    60 35 ₹133,175,523 ₹33,748,738 ₹24,143,429 ₹17,326,831

    (Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)



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