Many senior citizens in India have a fixed income that does not keep up with inflation, making it tough to live comfortably in their twilight years. To combat this problem, they will have to invest their money to have a better quality of life when they retire.
This article talks about the best investment options for people above 60 years old in India. We will also discuss how to plan your portfolio before investing and what kind of returns you should expect from these investments. Lastly, we go through various types of investments for seniors like gold buying and NPS (National Pension Scheme), good retirement plans for old age security.
How can Senior Citizens Invest Their Money?
Pension plans are the best possible option for a senior citizen fixed deposit scheme. Most companies today have pension plans that you can choose to enroll in. Upon retirement, you would receive monthly payments that will help you to live comfortably. However, if your company does not offer any pension plan, you could always start one independently. All it takes is time and effort when you are still working on setting up the plan. It is essential to take care of the plans properly.
You could also open an investment account and invest in mutual funds like equity or debt funds. You can later add these funds to your pension plan, and you will receive handsome dividends.
Another type of investment that seniors could make is gold buying. There are many centers across the country to buy gold, which is a good way for old age security. However, if you don’t have money, you can always invest in the National Pension Scheme (NPS). It is a government-sponsored scheme where they contribute a percentage of your income, and they pay your monthly pension and any investments you make in it until the time you retire.
What Should Seniors Look Out For in the Market?
If you are looking to invest money in the stock market, there are some things you need to keep in mind. Firstly, your investment horizon should be long-term for senior citizen FD rates. It means that you shouldn’t buy and sell stocks often because it will hurt your overall returns if you do. Instead, you could always invest a part of your portfolio into a short-term fund that is actively managed and then invest the rest into a more passive fund that tracks a benchmark index like Nifty or Sensex.
You should also stay away from the shares of small companies. You should also look into municipal bonds as they are also a good option for those who want to invest in stocks. However, you should know that the interest rates on these bonds are low, and they will not give you as big of a return as you would get from a high-interest savings account or a PPF (Public Provident Fund) account. It is of utmost importance to keep researching the best schemes to invest in and secure your future.
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