Inflation Protected Bond

Inflation-protected bonds are bonds which account for the effects of inflation. The fixed yield rates are lower than those you get with conventional securities, but in exchange these securities include an adjustment rate which balances the effects of inflation.

Example: An inflation protected state bond with a 1 percent fixed yield rate and an inflation adjustment of 3 percent per year will yield total returns of 4 percent per year.

More on this topic:
Swiss securities broker comparison

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