Diversified portfolio is the best antidote to help you beat inflation
By allocating to equities, debt, and gold, you can earn positive real returns over long term
Last Updated at October 23, 2020 19:51 IST
The State Bank of India pays interests of 5.4 per cent and 6.20 per cent (to non-senior and senior citizens, respectively) on its 5-10 year fixed deposits (FDs). However, the consumer price index (CPI)-based inflation touched 7.34 per cent in September.
If CPI inflation remains at this level, households investing in such safe instruments will end up with negative real (inflation-adjusted) returns. The key reason for the current surge in inflation is high food prices. “There has been a sharp spike in food prices over the past 9-10 months, and that has put pressure on household ...
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First Published: Fri, October 23 2020. 19:49 IST