As COVID-19 still looms large, people are also worried about inflation. People were worried about the price rise as stay-at-home orders and lockdowns became the norm for over a year. Inflation hurts the purchasing power of your money and even the country’s economic growth. Apart from that, it affects your mutual fund investments too. But there are a few strategies that you can use to survive inflation. They are:
- Diversify your investments:
First, attempt to create a mutual fund portfolio of diversified asset classes like bonds, mutual funds, commodities, real estate, and stocks. This strategy may create a resilient portfolio because different asset classes react differently to inflation.
- Educate yourself:
Stay updated about market trends, financial strategies, and various investment opportunities. It is prudent to determine the impact of inflation on your finances. You can do so by using an inflation calculator in India to calculate inflation. You can make well-informed financial decisions by staying informed about market conditions.
- Continue investing:
Cultivate the habit of saving and continue your investments even during low inflation. Build an emergency fund to withstand unexpected financial crises. Have a long-term perspective to maintain your purchasing power and accumulate wealth over time.
- Use calculators:
Just enter the current investment cost, investment horizon and inflation rate on the online inflation calculator to calculate the impact of inflation. These actions will provide the future value of your investments.
Now that you know the strategies for overcoming inflation, let’s learn about inflation rate calculators and their benefits.
What are inflation calculators?
An inflation rate calculator computes the impact of inflation on your purchasing power. It will show you the worth of your investments in the future. To determine inflation, you must calculate the CPI, i.e., the consumer price index. CPI is the cost of some goods and services in the current year. The following is the formula used for calculating inflation using CPI:
Inflation = ((CPI x+1 – CPIx)/ CPIx))*100
How can these calculators help in mutual fund investing?
These inflation rate calculators can help you formulate a financial plan to acquire capital in the long term. You can make wiser financial decisions by determining the worth of your savings. Furthermore, there is no restriction on the number of times you can use them. These factors make inflation calculators useful.
What are the benefits of inflation rate calculators?
Here are a few benefits of an inflation calculator:
- Accessibility:
Physical calculators are outdated because online calculators have replaced them. They are easily accessible because of the internet and are free to use. Search engines will show you multiple free-to-use online inflation rate calculators.
- No details required:
There is no requirement for entering your data to use an inflation calculator. You can use the free online calculator directly after clicking on the link.
- Time saving:
Inflation calculators provide answers in no time. Apart from the convenience offered, these calculators are free to use.
Conclusion:
Inflation will minimise your purchasing power. Therefore, it is imperative to formulate a financial plan for a secure future. To create a financial plan, you must know the required investment amount. You can determine the investment amount with the help of an inflation calculator.
To use inflation calculator visit https://mf.nipponindiaim.com/knowledge-center/tools/inflation-calculator.
