Fixed Income Investments

Fixed Income Investments Investments such as fixed deposits, non – convertible debentures, monthly income plans, or any other government bonds or certificates which yield a fixed rate of interest. When the rate of inflation, both their capital value and yield value are eroded. Assuming an inflation rate of 8% per year, the value of a rupee in five years will be 68p., in ten years 46p, in fifteen years 31.5p., and in twenty years it will be only 21.5p. So much for fixed income planning when people have started living much longer after retirement. See INFLTION AND THE VALUE OF RUPEE – APPENDIXE.

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