Inflation is your biggest financial enemy because it devalues your money as prices increase over a given 

time period. Every rational human being protects his possessions. Similarly, to protect your wealth in the 

modern age, you have no other option but fighting inflation through investing your savings. 

Investing is the best solution for inflation; if your money sits idle in the bank, it will only devalue over 

time as its purchasing power reduces. The solution is to invest, and make your money do the work for 

you to earn returns that prevent the destruction of your wealth caused by inflation. 

There are many ways to safely invest and let your money make money through safe, low-risk, and Halal 

investments, that include: mutual funds, real estate, and gold among many others. 

Mutual Funds 

Alone, you are weak; united, you are strong. This is the basic summary of mutual funds. Many investors, 

sharing a common investment goal, pool their funds altogether in a mutual fund. Then, this large

collective amount is invested by the mutual fund manager in short-term debt, stocks, and bonds, etc. 

The large returns generated from the fund’s investments are then payed to all investors according to the 

size of their individual investments. Everyone gets a piece of the pie. 

Mutual funds cater to investors with various risk appetites, so there’s something in them for everyone, 

whether you invest PKR 5,000 or PKR 1 million. You can opt for:

• Very low-risk
• Low-risk
• Medium risk
• High risk

Mutual funds have solidly grown by 14% over the years, which is why they are considered a reliable, 

free, Shariah-compliant, and safe source of multiplying your money. This growth has made mutual funds a solid solution to inflation because investors generate a higher return on their investment compared to the average inflation rate over the years. 

Moreover, as inflation increases, interest rates tend to increase as well. Since interest rates are directly tied to mutual funds returns because they influence the funds’ benchmarks, the returns of mutual funds increase automatically.