How To Inflation-Proof Your Investments

Investments, always subject to a variety of risks that can impact their value, are never safe.

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For example, the value of your investment could decline due to the performance of the company you invested in. If you hold fixed-rate bonds, a spike in interest rates could cause the value of your investment to fall, as demand switches to higher rate bonds.

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But another investment risk has once again reared its head: high inflation. Usually measured as the average increase in consumer prices over a year, inflation erodes spending power if income or returns do not keep pace.

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So, while making inflation-proof investments is essential in the short-term, inflation is something that investors always need to bear in mind in the future.

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Our June Active Practice Update highlights some of the methods you can use to inflation proof investments Disclaimer: the following are investment methods that may or may not suit your situation, but should not be taken as investment advice. Always talk to a financial adviser before investing. apu-jun23-inflation-proofing

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If you would like to discuss in more detail any of the issues raised in this article with a member of our team, please call 01772 741200.