EP6 | Finance Ke Funde: How will Mutual Fund give Inflation beating return? Jagran Business

To beat inflation, you must make investments that will yield returns higher than the current rate of inflation.For instance, if you invest Rs. 1 lakh and receive a 5% yearly return, you will conclude the year with Rs. The profits you are producing, however, fall short of the pace at which money is losing its purchasing value if inflation is 6.5%.

Be aware that there is no surefire technique to beat inflation before continuing. Even fixed-return investments like fixed deposits do not provide returns that outperform inflation.This is so that you can determine whether you've effectively outperformed inflation with your returns based on the rate of inflation and the ROI (Return on Investment) on your investment. In actuality, inflation-beating returns are not typically produced by fixed-return instruments. Additionally, keep in mind that the riskier an investment is, the bigger its return potential is likely to be.Despite this, some investment choices are well known for having a chance of outperforming inflation.