NEW YORK ( TheStreet) -- During the past 12 months, the consumer price index rose 3.6% and oil prices climbed. Seeking to benefit from rising prices, investors scrambled to buy Treasury Inflation-Protected Securities. Inflation-protected funds -- which invest in TIPS -- returned 8% in the past year, outpacing the Barclays Aggregate Bond Index by nearly 3 percentage points, according to Morningstar.Should you join the crowd and buy inflation funds? Perhaps. Many financial advisers argue that the inflation funds make good choices for investors who seek to protect their purchasing power. But now some advisers have become lukewarm about TIPS, arguing that they have gotten a bit expensive. A vocal minority says investors should avoid TIPS altogether.
TIPS Can Offer Long-Term Value
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