In fact, this is an obfuscation in the way reduction of interest rates is announced and carried in the media. Real (inflation adjusted) equity returns are actually double or triple that of fixed income. Where a FD may generate 1.5% above inflation, equity will do 3 to 5%.There is no way out except to take some exposure to equity in a measured, de-risked and tax-efficient way. "If one is to avoid old-age poverty, then this phobia of equity investment in retirement must be gotten rid of. The best part is that the value of the remaining investment will also grow at roughly the inflation rate.

Source: Economic Times January 08, 2018 01:00 UTC