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Financial planning aims at ensuring that a household has adequate income or resources to meet current and future expenses and needs.

How inflation can affect your investments

posted by alisha on May 23, 2018
tags: share tips mcx tips

When you are planning your investment, it is critical that you take into account the effects of inflations on your investments. At its most basic level, inflation is simply a rise in prices. Overtime, as the cost of goods and services increase, the value of a rupee is going to go down because you won’t be able to purchase as much with those rupees as you could have in the last month or last year. Good share tips can help you fight inflation.How does inflation affect my investment decision?A burger which used to cost Rs 20 a couple of years ago cost Rs 70 now. The cost increase is not as a result of an increase in quantity or better quality. The increase is a result of an increase in prices of ingredients which have increased as a result of inflation. Change in the prices of some assets. Inflation is greatly feared by investors because it grinds away the value of your investment. That is why investors often go for MCX tips.For example, If you invest Rs.1000 in a one year fixed deposit that will return 5% over that year, you will be giving up Rs.1000 right now for Rs.1050 in 1 year. If over the course of that year there is an inflation rate of 6%, your expenses which were Rs.1000 in the previous year will increase to Rs.1060 at the end of the year.

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