INFLATION AND TOP 3 INVESTMENTS OPPORTUNITIES FOR NRIs IN INDIA

Legal Pay26 May, 2022Business

The retail Inflation rate came out to be 6.95% in March 2022 and FD returns were around 5.05%. According to Fisher?s equation, the real interest rate will therefore be negative 1.9% implying that investors are losing money on their FD investments. So, how does Inflation work? Let?s say you have Rs 100 in your savings account that pays a 3% interest rate. After a year, you will have Rs 103 in your account. But if the rate of inflation is running at 5%, you would need Rs 105 to have the same buying power that you started with.