| Year | Opening Balance | Inflows (SIP) | Interest Added | Outflows (SWP) | Closing Balance |
|---|
Nominal value is the future cash balance you will see in your account. Real value adjusts this balance for inflation, showing you its true purchasing power in today's terms. This helps you understand what your future corpus can actually buy.
This determines how often accrued interest is reinvested back into your principal. More frequent compounding (e.g., Monthly vs. Yearly) yields slightly higher long-term returns because your interest begins earning interest sooner.
A Systematic Withdrawal Plan allows you to withdraw a fixed income. However, if your withdrawal rate exceeds the interest generated, you begin consuming your principal. This reduces compounding power and can accelerate capital exhaustion.