How to beat inflation when bank FD rates are less

POSTED BY Ankur Lakhia ON September 25, 2010 10:42 am COMMENTS (4)

Interest rates on bank FD are quite less compared to inflation, especially when you count income tax, stock market is over valued, real state is almost out of reach and Gold is at all time high. How one can invest for long term in this scenario with a view of beating inflation?

4 replies on this article “How to beat inflation when bank FD rates are less”

  1. @Ankur

    seems like you are finding a short term solution that how to bear inflation in next 1-2 yrs , which is not possible , beating inflation is a long term play and the right now a situation is bad as everything is on upside , the best time to invest would be when there is next cycle of crashes , so for now if you dnt want to take risk , just keep your money in FD or Debt funds and be ready with all money to deploy it in next downturn or equity markets or real estate markets , whatever suits you 🙂

    Manish

  2. You can invest in
    a) Mutual Funds MIP
    b) Post office MIS
    c) SIP in Gold
    d) FMP of mutual funds
    e) PPF

    Hope it will help you.
    MoneySavingsHelp

  3. rakesh says:

    Apart from SIP you can look at MIPs of various MF houses.
    They are less risk when compared to other equity funds. Some Funds like Birla Savings MIP 5, only invest 5% in the market and rest in government securities. You can expect returns in the range of 8-10% per year.
    I have invested in this fund for the last 6 months and my returns are over 10% till date.

    Rakesh

  4. sainath says:

    What do you think about Systematic Investment Plan?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.