5 Ways to Beat Inflation
Invest in market-linked avenues
Like mutual fund investments, market-linked avenues invest in the capital markets, thus working in sync with the economy. If the economy experiences inflation, the capital markets grow to accommodate it. As such, the returns from market-linked avenues are inflation-adjusted, offering you real returns on your investments and helping you beat inflation.
Equity can be a good option
The equity market has the potential to generate inflation beating returns, however, investing in equity carries some risk.
If you are risk-averse, you could invest in equity mutual funds, which offer a diversified and professionally managed portfolio. Equity mutual funds help you mitigate equity risks while managing returns.
Gold can act as a hedging tool
The value of gold is linked to inflation since it typically rises whenever there is a rise in the inflation rate. Gold is, therefore, considered a hedge against inflation. You can either choose to opt for physical gold (ornaments, gold coins, bullion, jewellery etc.) or opt for digital gold or gold mutual funds for a more liquid and affordable choice.
Invest in real estate
Real estate values are also linked to inflation, and if inflation rises, so do property values. Even if you have your own home, you can invest in another property for rental income.
Use the sale season to shop
Sales offer great value for shoppers. You can avail of discounts anywhere from 10% to 80%, if you hunt for the best deals. Plan your major expenses carefully and use the sale season to do most of your shopping. While inflation might raise prices, the sale season will help you stay within your budget.
These five tips can help you stay ahead of inflation. Consult a professional investment advisor and start building an inflation-proof portfolio today.
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
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