The Real Returns Ready Reckoner
A look at the real returns of a variety of assets, savings and investment products after inflation.
As the UK and many other parts of the world are experiencing rises in prices and potentially interest rate rises, too, it can be difficult to work out where to store your money to see it increase in value in real terms.
So interactive investor has launched a quarterly ‘real returns ready reckoner’, which will track the returns from a variety of assets and savings and investment products after inflation, to help.
Take a look at the performance of returns against inflation in 2021, below.
Average annual actual and estimated real returns over 12 months to December 2021, based on 5.4% CPI inflation
| Asset / product type | Annual return to December 2021 | Real return after UK CPI inflation, calculated by ii |
| Easy access cash savings accounts (interest)* | 0.17% | -5.23% |
| 1-yr fixed rate bond (interest)* | 0.59% | -4.81% |
| Global equities (MSCI World Index)** | 22.9% | 17.5% |
| UK equities (FTSE All Share)** | 18.32% | 12.92% |
| Residential property – capital growth*** | 10.4% | 5% |
| Residential property – rental yield, gross (November 21)**** | 4.98% | -0.42% |
| Gold** | -2.87% | -8.27% |
| Global corporate bonds** | -2.06% | -7.46% |
| ii ISA investor performance - average (capital growth and income) | 13.7% | 8.3% |
| ii Sipp investor performance – average (capital growth and income) | 12.2% | 6.8% |
Source: interactive investor research, January 2022.
Notes to editors:
- *source: Moneyfacts Treasury report
- **Morningstar Direct
- ***Nationwide
- ****Zoopla
- ii customer account data is from the ii Private Investor Index.
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