Please Suggest regarding investments and savings for Senior Citizen

Hi Pankaj,

My father-in-law is a retired government employee. He is 73 years old and his current monthly income from pension and post office MIS schemes comes to approximately Rs.8000/-.

He has recently sold a property and currently has about Rs.7,00,000 (Seven Lac) which he wants to invest so that he can increase his monthly income.

Kindly suggest the funds/schemes where he can invest, which are reliable and secure, and offers good return on monthly income.

Though he would like to invest the amount but would also prefer to have the option to withdraw the amount in case of an emergency.

We are waiting for your suggestion and your advise would be highly appreciated.


Moumita Dasgupta

asked May 26 '12 at 10:52 by Moumita Dasgupta 1124


Assumption : Conservative investor

Step 1 :

Find out the monthly requirement(Amount).

Step 2: First make a contingency fund (This should be easily acessible . but dont put in savings bank account. you put this in either liquid fund / FD linked with your savings account where you can acess the money easily and earns higher interest than savings also)

Step 3:

Write down the goals if he has any.Link the investment decisions to the goals.

Step 4:

Fixed deposit:

Now a days fixed deposit are giving us more interest rates. To find out the latest interest rates. pls visit this webpage can book a ladder of fixed deposit(one at may, next bunch in june and next one in july) and opt for quarterly payout so that you will get the interest amount consistently every month.(Atleast the entire amount what he is goi to invest can be separated for the next three months so that he periodically earns interest).

2.Separate in diff denominations (25000, 50000, and 1 lakhs) the fixed deposits and book it. dont put all your money in one fixed deposit. Bcoz if we want to take out your money in case of emergency then entire amount fixed deposit need to be broken in case if you invest fully..

  1. Invest in a 5 yr deposit with quartely interest payout.(Plan the FD according to your goals. if you dont have any look for the longer duration 5 yrs)

This is an article regarding to the Debt Funds. Check out whether it suits your goal and whether he able to stomach the risk

Senior citizen savings scheme

This provides the basic of this scheme. UP to 15 lakhs we can invest in the above one for the senior citizen. and gives you better returns than MIS Post office

Step 5:

These are the above avenues which will help you to earn monthly income (fixed income securities).

Now calculate how much extra monthly income u get on doi the investment.

Find out the actual Surplus monthly income. split that into two

Two options:

  1. Once again the extra money monthly can be put to the Recurring deposit . Rd can also be used to link any of the short term goals.( 1 yr to 5 yr)

  2. Investing in Balanced Fund

This is a very conservative fund which have atleast 65 percent equity and 35 percent Fixed income securities. To give a inflation beating returns atleast 20 percent of your investment need to be done in equities.

Fund suggestion : Hdfc prudence/ Hdfc balanced.

These two are well managed funds which has provided very good returns for the investors in long term.

you can start Sip on any of the above funds....

Give nominee for all the investments

If you have any other queries pls post...

answered May 26 '12 at 21:51 by vignesh 94671423

All the interest acquired is taxable according to the tax slab
(May 26 '12 at 22:08) vignesh
Thank you Vignesh for your detailed answer. I have already started to invest accordingly your suggestion. Thanks to Pankaj also for accepting Vignesh's suggestion. Moumita Dasgupta
(May 29 '12 at 10:37) Moumita Dasgupta

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Asked: May 26 '12 at 10:52

Seen: 1,960 times

Last updated: Jun 01 '12 at 00:20