Senior citizens investment instruments

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billubakra

Hi,

What are good instruments for senior citizens to invest in? At this age safety of the principal becomes of utmost importance. Here are some that I know of-

1. FD- Not beating inflation nowadays.
2. PPF/EPF- Good and must for everyone but at retirement or when someone is 60 or plus the extension is allowed for t+10 years only.
3. Senior Citizens Savings Scheme- A joke as interest is giving quarterly. No compounding benefit. Fully taxable. Though in first year claim till 1.5l can be made. Not good if one has option 2.
4. Pradhan Mantri Vaya Vandana Yojana and annuities- Linked with LIC/insurance. The real return is crap.

Sure no risk no return, but for a senior citizen is there any instrument which can give equal to or a little more than the inflation rate?

Thanks

@guest_999 @bikidas2060 @andromeda @caks2006407 @dharmanath481

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billubakra wrote:

How can one be sure that mfu isn’t selling anyone’s data?

It’s an initiative from AMFI. Trust…Cannot be sure 100% anywhere.

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dhinchakrohit wrote:

It’s an initiative from AMFI. Trust…Cannot be sure 100% anywhere.

I know bro but it is handled by some private company, can’t recall the name, like digio.
Privacy is a joke in the world. In India chutiya=privacy.

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billubakra wrote:

I know bro but it is handled by some private company, can’t recall the name, like digio.
Privacy is a joke in the world. In India chutiya=privacy.

All fintechs are handled by some private vendors….They have NDA signed.

Btw we are deviating from the topic. FRSB bonds also good option for senior citizens.

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For 100% safety with better return than FD u can get it in
1) SCSS
2) Pradhan Mantri Vay Vandana Yojana
3) RBI bond (Floating rate is drawback here)

If u want to get more return then it can’t come with 100% risk free. For that u can think of Idfc bank, small finance bank or FD in some reputed NBFC like HDFC LTD., Bajaj Finance, Mahindra Finance

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billubakra wrote:

Bhai arbitrage ko regularly monitor karne ki jaroorat nahi hoti?

pick the best ones, you need to monitor

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dhinchakrohit wrote:

Don’t sell your data, go for MFU. But no insights is the drawback.

I wonder what will they do with my data?

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karanoshan wrote:

I wonder what will they do with my data?

U will get disturbed in the silent/sleepy afternoon with promotional calls, SMS…Spam Emails, etc

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Dealkeeper wrote:

SCSS means

Senior citizen savings scheme.. Its available in post offices

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VimAl_Raj wrote:

Senior citizen savings scheme.. Its available in post offices

Also in some banks.
I did it with ICICI.

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dhinchakrohit wrote:

All fintechs are handled by some private vendors….They have NDA signed.

Btw we are deviating from the topic. FRSB bonds also good option for senior citizens.

….They have NDA signed….
LOL

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drjpatwa wrote:

For 100% safety with better return than FD u can get it in
1) SCSS
2) Pradhan Mantri Vay Vandana Yojana
3) RBI bond (Floating rate is drawback here)

If u want to get more return then it can’t come with 100% risk free. For that u can think of Idfc bank, small finance bank or FD in some reputed NBFC like HDFC LTD., Bajaj Finance, Mahindra Finance

Sir option 1 and 2 are not beating inflation. Isn’t there a long lock in period for the last one?

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billubakra wrote:

Sir option 1 and 2 are not beating inflation. Isn’t there a long lock in period for the last one?

Only equity can beat inflation in long run. U can’t get any instrument which is 100% safe, still beat inflation by good margin.

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drjpatwa wrote:

Only equity can beat inflation in long run. U can’t get any instrument which is 100% safe, still beat inflation by good margin.

Agree but there should be something for senior citizens which can atleast match, if not beat, inflation. Current inflation rate is 7.64% This is why India is going down the drain, sorry for being this blunt but the fm is doing nothing. I love my India btw.

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billubakra wrote:

Agree but there should be something for senior citizens which can atleast match, if not beat, inflation. Current inflation rate is 7.64% This is why India is going down the drain, sorry for being this blunt but the fm is doing nothing. I love my India btw.

Looking at investment at a given point in time is not going to work.

IMO, it is very narrow minded approach that you just stick to today’s inflation of 7+ and look for investments that give more than this.

Also you dont want to invest in 5 year plans as well.

For senior citizens the first priority should be safety of investment and then return on investment.

Unfortunately we are in such a economic scenario that every investment doesnt seem right.

That leaves us with two options, either choose the best option ( even though it doesnt beat inflation )
OR
Wait for your Prince Charming and park your funds in savings account.

Remember inflation will vary (it may go down or up, but once you commit to fixed return plans returns dont change, say if inflation goes down tomorrow interest on your investment wont be reduced , true for inflation going up as well)

All in all, dont chase returns beating inflation atleast for your requirements of short term investment which should be risk free as well.

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jainashish85 wrote:

Looking at investment at a given point in time is not going to work.

IMO, it is very narrow minded approach that you just stick to today’s inflation of 7+ and look for investments that give more than this.

Also you dont want to invest in 5 year plans as well.

For senior citizens the first priority should be safety of investment and then return on investment.

Unfortunately we are in such a economic scenario that every investment doesnt seem right.

That leaves us with two options, either choose the best option ( even though it doesnt beat inflation )
OR
Wait for your Prince Charming and park your funds in savings account.

Remember inflation will vary (it may go down or up, but once you commit to fixed return plans returns dont change, say if inflation goes down tomorrow interest on your investment wont be reduced , true for inflation going up as well)

All in all, dont chase returns beating inflation atleast for your requirements of short term investment which should be risk free as well.

You are right sir. Inflation in India will never go down below 6.5% in any case so one should consider inflation around 7%
Not my money someone else’s. He can invest in 5 years plans but it should have an option of prematurity. Now I wasn’t able to find any instrument which matches inflation rate, around 6.5-7%, let alone beat it so asked here. Any heads up about this?

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Retail inflation was under 5% for last few quarters before corona, after interest rates were reduced post corona, inflation jumped up.

There is no straight answer to your query, there is no instrumnent that can give guarantee of capital, plus it is short term or allows premature withdrawal, plus gives 7+ interest

That’s why i said choose the best from available options rather than rejecting every suggestions in this thread saying that it is not beating inflation or it needs constant monitoring or it is long term.

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jainashish85 wrote:

Retail inflation was under 5% for last few quarters before corona, after interest rates were reduced post corona, inflation jumped up.

There is no straight answer to your query, there is no instrumnent that can give guarantee of capital, plus it is short term or allows premature withdrawal, plus gives 7+ interest

That’s why i said choose the best from available options rather than rejecting every suggestions in this thread saying that it is not beating inflation or it needs constant monitoring or it is long term.

Not my money, not my decision. I can only convey the message. Thanks brother.

From which site do you check the historical data for inflation?

Missing