Investments, always subject to a variety of risks that can impact their value, are never safe.
For example, the value of your investment could decline due to the performance of the company you invested in. If you hold fixed-rate bonds, a spike in interest rates could cause the value of your investment to fall, as demand switches to higher rate bonds.
But another investment risk has once again reared its head: high inflation. Usually measured as the average increase in consumer prices over a year, inflation erodes spending power if income or returns do not keep pace.
So, a fixed-rate bond that pays 2% would actually depreciate in value in a year where inflation runs at an average rate of 3% — despite the numbers in your bank account ticking upwards.
In the 12 months to March 2023, inflation hit 10.1% and, according to the Office for Budget Responsibility (OBR), will average 6.1% for 2023.
Read more on APU: June 23: Inflation-proof investments here:
You might be interested in...
10 Jul 2026
After his grandad died, TC Group Holbeach’s Digital Development Manager and keen cricketer, Jake Burton, thought a good way to honour him would be to fundraise for Alzheimer’s Research UK. Five years on, he’s raised £67,000 and counting.
Learn more
How TC Group’s Jake Burton raised thousands to help fight dementia
07 Jul 2026
Could your business run without you? Explore why owner dependency is a major risk and how early succession planning can protect continuity and value.
Learn more
Succession Starts Long Before You’re Ready To Leave
07 Jul 2026
Making constant decisions is taking its toll on business owners. Explore why decision fatigue happens and how to build clarity into everyday decision-making.
Learn more
Decision Fatigue Is Not Weakness – It’s A Leadership Risk
07 Jul 2026
In a fast-moving, uncertain world, business owners need clarity, not certainty. Discover how real-time insight supports better decisions.
Learn more
Clarity Over Certainty: How Business Owners Can Regain A Sense Of Control
07 Jul 2026
In a world where certainty is no longer the norm, the businesses that succeed are those that keep moving. Drawing on insights from 1,500 UK business leaders, Stephen Watts explores how leadership is evolving.
Learn more
Why standing still in business is no longer an option
01 Jul 2026
TC Group has given a clear signal of its commitment to the success of the region by moving its team to the heart of Bournemouth Christchurch and Poole (BCP).
Learn more
TC Group moves to the heart of Bournemouth