There are a variety of investment options for senior citizens like fixed deposits, gold, real estate, recurring deposits, etc. but are mutual funds among them?
Traditionally, senior citizens steer clear of mutual funds because of the associated risk and the time frame in which returns will appear.
While no mutual fund agent can tell you whether or not you should invest in mutual funds, a senior citizen can certainly look for certain funds that suit their requirements and needs.
Mutual funds typically offer returns that beat inflation. However, given that at present, it is a high-interest rate regime, choosing FDs and RDs is also a good investment choice. Most banks are at present offering 6.5-7% interest rates which are comparable with the inflation rate of 6.77% as of October 2022. However, some mutual funds offer return rates as high as 8-9% which are certainly inflation-beating.
The investment portfolio any investor has should have a level of diversification. Mutual funds bring in that much-needed diversification to your portfolio. You can choose to place your money in stocks, bonds, ETFs, and mutual funds as the case may be. A mutual fund agent can help you in this regard. Mutual funds can help senior citizens beat inflation with ease. There are two ways a senior citizen can invest in mutual funds. They can choose to invest through SIPs or lump sums.
Typically, senior citizens are afraid of investing in mutual funds because of the risk associated. Hence, in such cases, they are better off investing in debt mutual funds rather than equity mutual funds. A senior citizen can also choose to invest in hybrid or balanced mutual funds. Analyse your risk appetite and decide whether or not you should choose to invest in certain mutual funds or not.
If, as a senior citizen you need the help of a mutual fund agent to advice you about the various mutual fund schemes that are available, you can choose to contact us at Money Assist. We will help you build a portfolio through the regular plan of investment. Therefore, if as a senior citizen you are looking to build yourself a suitable corpus, you can reach out to us.
Whether you, as a senior citizen, should invest in mutual funds with the help of a mutual fund agent, is your choice. Think about the move carefully and then decide whether mutual funds are the right investment vehicle for you. Money Assist is the perfect agent for you who can help you build a proper corpus for the future.
