Wednesday, March 8, 2017

Classic example of inflation when I bought MILK today morning....

Classic example of inflation when I bought MILK today morning....😱😱😳😳

Amul hikes milk price by 2 rupees per litre.

Rate in  March 2007 per litre after 2 rate hike in 2006...

Gold 19
Shakti 17
Taza 15

Today's rate

Gold 52
Shakti 48
Taza 40

Milk price (INFLATION/ MOGHWARI) increased annually by 10.5%

You bank FD, insurance policy, gold and real estate can't beat this inflation  ( 5- 6 % tax free return of such investment)

Your return (5%)  - Inflation (10%) = 5% LOSS on your Investment

My Finology always reminds you that INFLATION is the biggest risk in the world.

Do you know the PROFIT or LOSS of AMUL?

The profit of this business is more than inflation (15-20%). You should buy this business via equity investment.

There are many good businesses (like banking, software, petroleum, pharma, hospital, auto, consumer  and many more) which beat inflation significantly.  For that you have to buy equities  so that you become a parter of that businesses.

But how do you find such good businesses?

It's not your cup of tea but YES , it's a job of fund manager. So you must invest via mutual fund to beat inflation  ( 12-15% tax free return)

Still you think, you beat inflation by investing in traditional investment instruments like, FD, GOLD?

No comments:

Post a Comment

Featured Post

Financial Advisor ka follow rule

Bull na kar jaaye humko fool Financial Advisor ka follow rule Bear nahin hoga market se gull Financial Advisor ka follow rule Agar rehn...