Best Stocks During Inflation

I receive one common query and that is – Which are the Best Stocks to own During Inflation?

Inflation is the serious concern for many investors. Inflation erodes the purchasing power of your money over the time and that’s why you seriously need to think about How to beat the inflation. And Equity is the well-known asset class which beats the inflation & tax both – The 2 major Silent Money Killers in the long run.

Gold is the another asset class which beats the inflation and protects the purchasing power of your money. But Gold is not for Capital Gains. Last 500 years of data suggest that, Gold has traditionally beaten the inflation very well but does not provide any capital gain while Equity has beaten the inflation as well as proved the handsome returns in the long run (More than 5 years).

Now, Which are the Best Stocks During Inflation? Well, as such there is not the definition or guidelines in the literature about which kind of stocks to own during the inflation? But by and large, Bluechip stocks beat the inflation very well as well as provide the stability to your portfolio in any kind of market conditions.

You can also own the Fundamentally strong companies stocks of Midcap companies. In short, you can own any stock weather it is a Large cap, Mid cap or Small Cap provided that, the Company and its underlying Business is fundamentally strong and sound.

Say for Example, This Blog. This Blog is my Business & it’s a profitable Business. Now, suppose assume that, if this Blog Business was listed on the stock exchange as a small cap stock, Will you Invest in It? Well, of course Yes….. If you think that the fundamentals of the Company are sound and the underlying Business Model is really Sound. And of course, NO if you think that the fundamentals of this Business are not that much sound.