The inflation rate of India in May was 7.04%. Well if you ask about April it was 7.79% which was 8 years high. It has resulted in an increase in the prices of food, especially vegetables (18.26%), oils (13%), spices (10%), and so on.
I am focusing on the above facts because there are certain things I would like to address when it comes to beating the current inflation rate in India. Working as a Certified Financial Planner gave me the privilege to work with various age categories of clients. Where 20 to 35 can be a new bee to investments, 30 to 55 a responsible family member to 55+ who has more experience and have seen the world. There are a few common things in all the 3 age groups i.e they have some scalable financial goals, they want to beat inflation and they require the financial product to beat the inflation. I have various investment avenues to suggest but the real challenge starts when we question our few clients about their investment in traditional FDs. It is imperative for us as financial planners to make our clients understand the process to break the myth that FDs can beat the inflation rate.
Here I am not saying that FDs won’t help you to meet your financial goals, as it was one of the most preferred investment avenues in the ’90s and many of my clients have experienced the benefit of it. But Change is the only thing that is constant in the Universe!!
Hence with respect to that, we need to gauge the fact and ask ourselves do FDs will help us to beat inflation now?
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https://s9financialplanners.com/blog/rising-interest-fds-rate-wont-beat-the-inflation-rate-india/