How to profit from inflation?

Inflation,long a sleeping giant, is finally awakening. And that could present problems—along with opportunities—for investors.Effects of inflation is really very mysterious.It may ruin safe(conservative) investor and moderate investor may grow big!

 

Investing is one of the most popular ways to create wealth. By taking on a certain degree of risk, you can put your current assets to work for you and generate short- or long-term income, depending on your investment goals. Of course, the more risk you take on, the higher the likelihood of both success and failure. It is for this reason that riskier securities, such as stocks, are traditionally considered the go-to investments for those looking to strike it rich.

Since mutual funds are generally considered safer, more stable investments, it may seem counter intuitive that they can provide ample opportunities for aggressive wealth creation.Invest in mutual funds through SIP with advice of reliable expert and identify some good funds.Getting average 18 to 24 % annualized return through SIP based investment in Mutual funds is common in Indian economy.

Here I have given two case study .Mr. A,rich man indeed,who save Rupees 1 lac per month but he is very conservative and invest in Nationalized Bank’s FD only and Mr. B,Mediocre man but moderate investor,who save Rupees 20000 per month through investment in high rated mutual funds through SIP.Now see after twenty years both will become equal in finally earned amount.How?See below chart.

Mr. A,rich man indeed,who save Rupees 1 lac per month but he is very conservative and invest in Nationalized Bank’s FD only

A

Mr. A return after 20 years…

ARet

Mr. B,Mediocre man but moderate investor,who save Rupees 20000 per month through investment in high rated mutual funds through SIP

B

Mr. B  return after 20 years…

BRet

Click to see Compound Calculator for further Calculation

 

Advertisements

Leave a Reply