Regarding whether the fixed investment fund can fight inflation, we must first make it clear that what is the rate of return of the fixed investment fund? And how does inflation depreciate every year? Only by understanding these can we find out whether the fund can fight inflation.
According to statistics, the inflation rate in China should be 10%. Generally speaking, similar to the money fund, the income of bond funds is generally relatively high at an annual rate of 3%, so the money fund cannot outperform inflation.
Generally speaking, there are many equity funds whose annualized rate of return can reach 100%. Therefore, in order to fight inflation, equity funds are the first choice. But can we afford to choose such a fund? Obviously, most investors can't. In the long run, investing in equity funds can make money, but it may still be at a loss for a year or two. Do you have the confidence to hold it for a long time at a loss? Therefore, it is not recommended to invest in equity funds.
Which is the best investment fund? The answer is to invest in index funds. Because index funds are most suitable for fixed investment and long-term holding from their characteristics. As long as the national economy is stable and the economy develops upward, index funds will certainly develop upward, and basically as long as the cycle is well grasped, the possibility of rising is higher than that of ordinary funds, and the average annualized rate of return can reach 20%. Therefore, if you invest in index funds for a long time, there is basically no problem in fighting inflation.