World Elderly Day 2023: August 21 is celebrated as National Aging Day to recognize the achievements of the elderly group of our society. In India, a senior citizen means a person aged 60 years or older. On this Seniors Day, explore prudent investment options tailored to seniors, prioritizing safety and steady returns. With so many options available, it’s important to make informed decisions in line with their financial goals and risk tolerance.
Mutual funds are flexible investment vehicles that provide diversified portfolios managed by professionals. While equity funds are riskier, debt funds can provide steady income, making them suitable for older investors looking for steady returns. “However, it is essential to choose funds with lower volatility and a history of stable performance,” says Amit Gupta, MD, SAG Infotech.
Bank fixed deposit for the elderly
FDs are known for their security, making them an attractive option for the elderly. Gupta says that FDs guarantee a fixed interest rate for a predetermined period, but their returns can be relatively lower than other investment avenues.
However, they offer stability and can serve as part of a diversified portfolio, he added.
Also Read | FD Interest Rates for Seniors: These seven banks offer returns above 9% on fixed deposits. check here
Public Provident Fund (PPF) for the elderly
PPF and postal savings schemes are government-backed tools that emphasize safety and long-term growth. PPF, in particular, provides tax benefits
Post office savings program for the elderly
Post office programs such as the Seniors Savings Program (SCSS) offer a higher rate of regular income, directly serving the needs of seniors.
“When considering these investment options, you should consult a financial advisor. Their expertise can help build a balanced investment strategy tailored to an individual’s financial situation, goals, and risk tolerance. “Diversification across multiple instruments can help reduce risk and ensure consistent returns,” said Amit Gupta.
Also read: Special fixed deposit (FD) programs for seniors to invest in 2023. Interest rates and other details here
Gold for the elderly
For the elderly looking for investment options, gold could prove to be an attractive option, especially when you consider its long history of stability and preservation. “Gold is often seen as an insurance policy against rising inflation plus economic volatility. Amit Khare, Vice President of GCL Broking, said seniors can benefit from choosing gold as an investment because it has a long history of serving as a safe-haven investment. whole.
Although the price of gold may fluctuate in the near-term, its long-term value trend is still higher. It is therefore a beneficial option for seniors who are looking for stable and well-regarded investments, added Amit Khare.
The landscape of investment options for seniors includes mutual funds, bank FDs, PPFs and postal savings schemes. On this Seniors Day, may all seniors find financial stability and peace of mind through prudent investment choices.
Disclaimer: The views and recommendations given above are those of individual analysts, not Mint. We advise investors to check with certified professionals before making any investment decisions.
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Updated: August 21, 2023, 09:16 AM IST