SEE the Impact of Inflation on us: Inflation is often called the silent killer because it significantly erodes the purchasing power of money over time. To establish a frame of reference, consider this: At 6.5% long-term WPI (wholesale price index) inflation in India, the purchasing power of Rs 100 has eroded to a dismal Rs 13.80 over the last 30 years! As time goes on, every rupee you have saved will buy you fewer and fewer goods or services — a scary thought indeed! In search of real returns In general, conventional fixed income instruments in India have not provided investors with real returns, that is, returns over and above inflation. Over the last 30 years, an investor who diligently invested in one-year bank fixed deposits (FDs) every year would have generated real returns of just 1.6% per annum on a pre-tax basis, which after taxes would be insignificant. On the other hand, a real asset such as gold has generated higher real returns of approximately 3.3% per annum over the WPI inflation rate. Its no wonder then that Indians have developed a strong affinity towards the yellow metal. Seems to be interested.... To fight the inflation and know the solution...Read HOW TO INVEST ONLY FOR PROFIT NO LOSS or connect through opnl1212@gmail... Regards KKAWASTHI
Posted on: Fri, 21 Mar 2014 12:28:44 +0000
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