Inflation Protection

The term “Inflation Protection” is closely associated with the basic concept of inflation. “Inflation Protection” refers to the protection of a long-term policy, which offers benefits in the form of a small part of the actual cost of a person’s long-term benefits.

Philosophy guiding Inflation Protection:

• Inflation Protection is based on steady performance attained through active strategies, to capture various sources of surplus returns.
• Inflation Protection is attained through the employment of the following structural advantages on a continual basis:

• Presence of in-depth and specialized experts
• Innovations with respect to the emerging markets
• Breadth of the coverage of market
• Disciplined creation of portfolios

Role of Inflation Protection during investments:

• Inflation Protection offers diversification of portfolio because of low association with other classes of assets.
• To antagonistic and conventional investors simultaneously, Inflation Protection offers an appealing look to the investment characteristics.
• At the time of investments, Inflation Protection provides the scope for actual competitive yields, thereby rendering protection against inflationary increases.

Nature of Inflation Protection:

• The results of Inflation Protection are based on complete discretionary accounts, including those accounts which are no longer associated with commercial organizations.
• In case of Inflation Protection, no selective period of performance is taken into consideration.
• The performance results of Inflation Protection reveal total returns, which include changes made in the income and market value. These performance results are considered as time-weighted rates of returns and the net of commissions and transaction costs.
• Without Inflation Protection, the difference between the actual cost of the benefit derived from a policy and the payment made by such policy may be a significant amount.
• At the time of buying a policy, the increase in the benefits derived from Inflation Protection heightens the value of the protective features offered by the concerned policy.