Investing means committing funds for financial gains in the future. It is extremely important to save regularly and invest wisely as the short time span in which we are able to earn money needs to provide for our future so that we can achieve our financial goals or retire peacefully.
But inflation destroys the value of what we save. A sum of Rs. 10,000.00 saved this year will not have the same purchasing power ten years down the line. Hence we need to preserve the purchasing power of what we save.
The only way to hedge inflation in an Islamic manner is to invest in equity shares, gold or real estate and to earn returns from these assets that compensate for the decline in our purchasing power.