Fluctuation in inflation can occur in the short or long term. For examle, rice levels can increase and decrease on a month to month aisis and we can also evaluate inflation rates over time. Therefore, while it may be hard to redict the economic change it can be tracked over different time periods. One way we can think about inflation is that because of a loss in purchasing ower, there is basically a lower payout to investors. Are there any investing strategies that can be taken in order to rotect against this risk? Solution Investing startegies that can be taken to protect against inflation risk:- 1) Investing smartly in all types of investements like shares, real estate and golds . It will reduce the risk of inflation. 2) Short term investement in stocks and booking the profit instead of long terms. 3) Bonds are the most sensitive in the inflation, we should be extra careful with that. 4) Investors should maintain the portfolio highly flexible and liquidable during inflation. .

1. Fluctuation in inflation can occur in the short or long term. For examle, rice levels can increase
and decrease on a month to month aisis and we can also evaluate inflation rates over time.
Therefore, while it may be hard to redict the economic change it can be tracked over different
time periods. One way we can think about inflation is that because of a loss in purchasing ower,
there is basically a lower payout to investors. Are there any investing strategies that can be taken
in order to rotect against this risk?
Solution
Investing startegies that can be taken to protect against inflation risk:-
1) Investing smartly in all types of investements like shares, real estate and golds . It will reduce
the risk of inflation.
2) Short term investement in stocks and booking the profit instead of long terms.
3) Bonds are the most sensitive in the inflation, we should be extra careful with that.
4) Investors should maintain the portfolio highly flexible and liquidable during inflation.