Inflation measured by consumer prices rose to an eight-month high at 6.07 percent in February 2022. Contrary to the policymakers' belief of a transitory inflation, the inflation appears to be sticky and investors have to look for investments to beat it. Stocks are a good bet in the long term.

Though investing in stocks can be helpful in a high inflationary period, investors should not ignore interim volatility. Most investors are better off investing in stocks through diversified equity mutual fund schemes, over investing directly in stocks. Diversified equity funds tend to offer better risk-adjusted returns in long term, if investments are done through a systematic investment plan.