Safety against Inflation

The fundamental goal of investments is to guarantee our future, but we must keep track of inflation regularly.

The gains will be nil if inflation and the rate of return on investments are comparable. In an ideal world, the rate of return on investments would be higher than inflation.

Stock markets and benchmark indexes have consistently outperformed inflation.

If inflation is about 3-4 percent, for example, markets have seen annual returns of roughly ten percent.

Also, the benchmarks with their rise and fall have been the prime source of prediction of inflation. For example, if the market is constantly crashing then the news breaks out that inflation is near in the country.

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