Many people believe that avoiding investments keeps their money safe. CA Abhishek Walia, recalled a conversation that many people might relate to.
“A 35-year-old client once said, ‘Mutual funds are risky. I prefer safety.’” Walia shared. When he asked where the client had parked his money, the reply was simple: Rs 10 lakh sitting in a savings account.
Walia said he responded: “You’re losing money – quietly.”
Inflation in India is currently around 6%, while most savings accounts offer only 2–3% interest. This means that
“He wasn’t avoiding risk – he was avoiding awareness,” Walia explained. Many people don’t realise that inflation works in the background, reducing the buying power of their money.
Rather than pushing the client into high-risk options, Walia suggested a balanced approach. They made a small but effective change: Rs 3 lakh was kept untouched as emergency cash, while Rs 7 lakh was moved into a mix of short-term debt funds and index funds.
Within a year, the result was clear. The client earned nearly Rs 60,000 more than he would have earned by keeping the entire amount in a savings account, and without taking major risks.
For many, doing nothing with their money feels like the safest choice. But Walia believes that this mindset can be costly.
“Doing nothing with your money feels safe, but it’s the riskiest thing you can do,” he said. People often sit in their comfort zone without realising what they’re losing.
Walia summed it up in a simple but sharp line: “In personal finance, comfort zones are expensive. And inflation doesn’t need your permission to eat your savings.”
The lesson is straightforward — leaving large sums idle in a savings account may feel secure, but over time, it can silently drain your wealth. Even low-risk investment options can help your money grow and protect it from inflation.