SINGAPORE (Mar 20): Investment refers to anything which generates returns. We usually view investments as higher returns investment asset classes such as mutual funds, Exchange Traded Funds (ETFs), stocks, real estate and bonds. Even when a savings account generates a meagre 0.05% interest per annum, it is still considered a form of investment.

There are many reasons why people invest. One common reason is to fight inflation.

In 2019, Singapore saw an increase of 0.6% in Consumer Price Index (CPI) — a measure of inflation — and 1.0% in core inflation. Hence, if your investment is earning a lower return than inflation, the actual value of money you have is decreasing.

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