Inflation and you

The increasing rates of daily needs are likely to eat up what you consider as savings today in about 20 years. Your investments that attract fixed return would definitely be affected even by a reasonable inflation rate. In the long term, the returns that are considered to be ideal presently will turn out to be too less due to inflation. So, it is essential to invest in assets that will beat inflation. Preference can be given to stocks which have prospects of higher rise in value as compared to securities offering fixed returns.

The changes in living standard will also influence investments. Although gold is a good option, investment in stocks are ideal in the long run. An ideal blend of regular investment in debt securities and equities will definitely generate wealth irrespective of the inflation rate.