Senior citizens have several investment options at their disposal. However, they will need a high-paying instrument that can help them cover their regular expenses while earning enough growth to achieve their financial objectives. If you are older than 60 then you must also gauge whether an instrument provides assured returns or not. Here are the top 5 investment strategies that might help you earn substantial returns without any risks:
Investments that offer regular returns
If you are a senior citizen, you will need an instrument that can prove to be a source of regular income. While SCSS. POMIS and other government-backed saving schemes can provide periodic returns, you can think of investing in a corporate FD that offers several periodic alternatives.
Minimize the risks
Create an investment portfolio in such a way that it minimizes risk and enhances your chances to earn more. Though equities offer considerable returns, you might not want to allocate a huge chunk of your savings to them as their returns are dependent on market forces. Instead, you must think of investing in fixed income instruments that offer assured returns irrespective of whether you pick a short or long investment tenor.
With Bajaj Finance Fixed Deposit, you can pick between periodic payouts that are paid every year, six months, quarter, or month. Though the FD interest rates in India are far below the regular FD rates, Bajaj Finance FD offers an additional 0.25% FD rate to senior citizens. This enables you to earn a sizable income even after choosing a monthly interest payout.
Also, since it has been accredited highly by CRISIL and ICRA for being a safe investment option, you can consolidate your savings in it without worrying about anything.
Pick a tenor smartly
If an instrument offers a tenor range wide enough to accommodate your investment plans, you must go for it. Being said that, even you must act prudently and pick a smart investment tenor. While PPF, NPS, and some other fixed income instruments do not bring too many options with them, market-linked instruments like debts and equities can generate impactful returns only over a longer tenor.
Analyze the liquidity options
Invest in an instrument that lets you withdraw your investments when you require it the most. Also, analyze the other alternatives that you might be eligible for after picking an instrument.
For instance, Bajaj Finance FD lets you retract your deposits once they complete a minimum investment period of 3 months. Also, if you are not keen on withdrawing prematurely, you can apply for a loan against your FDs to cover your fund needs.
Moreover, you get a flexible tenor ranging from 12 to 60 months to pick a lock-in period that helps you plan your investments to perfection. If you are not sure about the tenor, you can use its FD calculator that can provide you with useful insights regarding the investment tenor and amount that you should be used to steer your financial plans in the right direction.
Go for online investment process
It is better that you go for the instruments that offer a completely online process because they will allow you to maximize the returns without bothering about stepping outside and wasting your time.
Bajaj Finance FD gives you the option of investing online through its online FD form. Also, you can share your KYC number to verify the required documents online. Not only that, but you will also get a 0.10% extra FD interest rate for doing so.
Your investment strategies need to be in place especially if you are a senior citizen because you cannot afford to put your investments at stake. While mutual funds and other market-linked instruments offer considerable returns, they are also risk-prone. Government-backed saving schemes such as POMIS, NSC, SCSS, etc. offer stability and assured returns but they do not come with flexible investment options. You may choose to invest in Bajaj Finance FD as it offers interest rates of up to 6.75%. Also, it is a safe investment option as credit rating agencies like CRISIL and ICRA have provided it with high credit ratings for protecting the capital of investors. Moreover, the easy online process, additional FD rates to senior citizens, and flexible tenor make it one of the best investment options for senior citizens.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.