6 Parameters to Consider for Any Investment Decision
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services. The goods which are worth Rs 100 today, next year the same product would be costing Rs 105 (considering 5% as Annual Inflation).
Inflation is a silent killer which many people do not account for.
While planning investments we need to consider the rewards accounting for Inflation also. If Fixed Deposit give 8% returns and Inflation value is 5%, the real benefit of investing in FD is 3% only.