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Mutual funds are right for the elderly too..! If you want strong ‘stick of return’ in old age, then keep these things in mind – investment and return how senior citizens should invest in mutual funds what should keep in mind – News18 Hindi


The objective of mutual funds is to diversify the investments of the investors.
Mutual funds offer higher returns as compared to traditional investment schemes.
Senior citizens can invest in short-term debt funds and short-term bonds.

New Delhi. In India, senior citizens get more interest and other facilities on all savings schemes. There are many investment options available to senior citizens. It is believed that elderly and retired people always invest wisely and their inclination is towards traditional savings schemes. They often avoid investing in schemes subject to market risk. A common misconception regarding mutual funds is that they are very risky for senior citizens.

However, this is not the case as mutual funds are also designed to meet the needs and risk tolerance of senior citizens. Although traditional financial instruments like fixed deposits and recurring deposits still exist, their returns are at their lowest at the moment. Returns from traditional investments are not able to beat inflation. Because inflation is increasing fast but money does not grow that fast in normal savings schemes. Therefore, the interest of investors in schemes related to market risk has increased.

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Start through SIP

The objective of mutual funds is to diversify investors’ investments and invest their money in securities such as stocks, bonds, ETFs and bonds, which are subject to market risk. The hard earned money of mutual fund investors is managed by professional fund managers and the benefits are passed on to the customers. Elderly individuals can also start investing in mutual funds through Systematic Investment Plan (SIP) or through lump sum payment.

Know about market risks

Different mutual funds provide different levels of returns. The returns of mutual funds are linked to the market, so it is never fixed. However, better returns are expected in these. If you are retired and looking for a short-term investment, you can invest in short-term debt funds and short-term bonds. These debt funds can give better returns as compared to bank FDs.

Tax will have to be paid on the income earned

As per the current mutual fund tax rules, you have to pay capital gains tax on the profit earned on every investment. Investments made in debt funds and debt-oriented hybrid funds for less than 3 years attract short-term capital gains tax (STCG) and you will have to pay tax as per your income tax bracket. At the same time, the return received on investment in the long term is considered as Long Term Capital Gain Tax (LTCG).

Tags: fixed deposits, Investment and return, mutual funds



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