inflation-linked bonds

Inflation-linked bonds are a type of investment that helps protect your money from inflation, which erodes purchasing power over time. Their principal value increases with inflation, and they pay interest on this adjusted amount. As prices rise, the bond’s payments grow accordingly, ensuring your returns keep pace with inflation. This makes them a valuable tool for preserving wealth in changing economic conditions, offering both income and inflation protection. Investors receive regular interest payments and get back the adjusted principal at maturity, reflecting the cumulative inflation during the bond’s term.