DEFINITION of 'Inflation-Protected Security - IPS'
A type of fixed-income investment that guarantees a real rate of return. The real rate of return is the nominal return, less the inflation rate, thus protecting investors from inflation.
BREAKING DOWN 'Inflation-Protected Security - IPS'
The purchase of IPS products is most often done with government products, such as Treasury inflation-protected securities (TIPS), but private sector companies also offer these products.