Inflation linked bond
The inflation linked bond provides protection against inflation. This is perhaps the most useful bond in current times against inflation. A normal bond would pay only as per its principal but these bonds adjust their returns based on the inflation in the current market prices. This would mean that your returns will be as per the prices of the market. You can easily cope up with a sudden increase in the prices with the help of these bonds. The payment of these bonds will increase over time. When these bonds mature the principal is paid back to the current amount at an inflated amount.