Can mutual fund be an inflation hedge?

Globalization helps developed economies to benefit from the low production costs in emerging markets during the booming past decade.....

YT Kum, CFA 02.07.2008
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Globalization helps developed economies to benefit from the low production costs in emerging markets during the booming past decade. However,this advantage has produced a mirage - inflation is well contained globally even though the monetary policies have been relaxing around the globe for years. Now,when global economic growth slows and production costs in emerging markets peak,inflation is back to eat into everyone's purchasing power and all pinched investors are finding a way out. In this regard,can mutual fund help?

Under the inflation scene,"inflation hedge" is the phrase on everyone's lips,but what does it mean precisely? Inflation hedge refers to investment designed primarily to protect against inflati

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About Author

YT Kum, CFA  YT Kum is a consultant for Morningstar, contributing to manager selection and asset allocation activities in Asia, and is responsible for providing investment thought leadership on topics relevent to investors in Asia.  

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