World Senior Citizens Day 2023: From Mutual Funds to bank fixed deposits to PPF. Best investment options for elderly

World Senior Citizens Day 2023: August 21 is celebrated as National Senior Citizens Day to recognise the achievements of the elderly population of our society. In India, a senior citizen means a person who is 60 years, and above. On this Senior Citizens Day, let’s explore prudent investment options tailored for the elderly that prioritize safety and steady returns. With a variety of choices available, it’s crucial to make well-informed decisions that align with their financial goals and risk tolerance.

Mutual funds are versatile investment vehicles that offer diversified portfolios managed by professionals. While equity funds carry higher risks, debt funds can provide stable income, making them suitable for elderly investors seeking steady returns. “However, it’s essential to choose funds with lower volatility and a history of consistent performance,” said Amit Gupta, MD, SAG Infotech.

Bank fixed deposits for Senior Citizens

FDs are known for their security, making them an attractive option for senior citizens. Gupta said that FDs assure a fixed interest rate over a predetermined period, but their returns might be relatively lower compared to other investment avenues.

Nonetheless, they offer stability and can serve as a part of a diversified investment portfolio, he added.

Also Read | FD interest rates for senior citizens: These seven banks offer above 9% returns on fixed deposits. Check here

Public Provident Fund (PPF) for Senior Citizens

PPF and post office savings schemes are government-backed instruments that emphasize safety and long-term growth. PPF, in particular, offers tax benefits

Post office savings schemes for Senior Citizens

Post office schemes like Senior Citizens Savings Scheme (SCSS) provide regular income at a higher rate, catering directly to the needs of elderly individuals.

“When considering these investment options, it’s prudent to consult a financial advisor. Their expertise can help in crafting a well-balanced investment strategy that aligns with the individual’s financial situation, goals, and risk tolerance. Diversification across multiple instruments can help mitigate risks and ensure steady returns,” said Amit Gupta.

Also Read: Special fixed deposit (FD) schemes for senior citizens to invest in 2023. Interest rates, and other details here

Gold for Senior Citizens

For senior people looking for investing choices, gold may prove to be an appealing option, particularly when you consider its long record of stability as well as preservation. “Gold is frequently regarded as an insurance policy against rising inflation plus economic volatility. Elderly folks might profit from choosing gold as a form of investment since it’s had an extended record of serving as a safe-haven investment” said Amit Khare, Associate Vice President at GCL Broking.

Despite gold prices might fluctuate in the near term, its long-term worth trend has been higher. Therefore, it is a potentially advantageous option for seniors seeking steady and appreciating investments, added Amit Khare.

The landscape of investment options for senior citizens encompasses mutual funds, bank FDs, PPF, and post office savings schemes. On this Senior Citizens Day, may all elderly individuals find financial stability and peace of mind through prudent investment choices.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.