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Investment Dictionary


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Inflation Linked Bonds

 

Inflation linked bonds (or inflation indexed bonds) are bonds that have their principal linked to inflation, which means the value of the bond principal increases together with inflation. Such bonds are offering protection from price increases for investors and may be good investment in some conditions, depending on interest rates that they are providing. 

 

Investing in bonds might be risky during high inflation periods and inflation linked bonds may be the right decision. 

 






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