How To Make Your Investments Inflation-Proof?

We all save money for our future needs, but saving alone won’t suffice in these highly inflationary days. Though you may accept or not your earning capacity is limited where the inflation rate is around 8-9% per annum in India.

It is fact that we can’t control inflation, but it is in our hands to invest in inflation beating products. Though you may be scared to invest in risky assets, it is fact that India is transforming into “Consumption” Theme economy.

Today’s youngsters are preferring to go digital and enjoy the consumption mode like never before. So if you invests in fixed income investments, the ultimate beneficiary is not you, Banks. Surprised! Read the full story

Though Bank deposits are safer, the primary duty of the Bank is to accept deposits at lower interest rate and lends at higher interest rate(Generally between 8-14% depending on the loan type). It is nothing but your deposited money!

Now tell me, who is ultimate beneficiary- Banks! Instead of depositing money in banks, if you become a shareholder of that bank, by buying equity shares, you get more profits than bank F.D’s. If you observe 10-15 years track record, bank shares fetches more returns than bank FD’s.

This is all possible through “Consumption Theme” of the Indians. Slowly India is transforming into “Savings theme” to” Consumption Mode”.

Youngsters are preferring to buy a house with a housing loan, purchase a car/bike by taking vehicle loan which was not followed by our parents and ancestors. This is a proof of growing Consumption Theme in India.

Now tell me, what would be beneficial to you?- Gaining lower returns sticking to the old savings theme or Gaining higher returns by becoming co-partner of that firm?The Former is Bank FD, the latter is Equity!

It is fact that banks are ultimate beneficiaries by accepting deposits at lower interest rate and lending at higher interest rate, but if you become co-partner(shareholder)of that financial institution, when consumption increases, your wealth also increases! This is a simple logic to beat inflation

Note- The above article is for informative purpose only aiming to create inflation-beating wealth. Not all financial institutions would give extra-ordinary returns, it is on you to identify which financial institution business would grow and deliver superior returns! Do your own research! website does not hold responsibility for your wealth, it is for informative purpose, do your own analysis and select which sector would perform in future and creates wealth to you.

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