After retirement, the paths of new income are completely closed. This is the reason why senior citizens are advised to have a safe investment option. But experts believe that mutual funds can also be invested keeping in mind many other things including their risk potential.
New Delhi. Generally, senior citizens are advised not to invest in equity mutual funds after retirement. Most people say that mutual funds are not a safe option for life after retirement. Experts call it a false belief. He says that senior citizens should not only think about safe options. It is believed that one of the biggest factors of investing in mutual funds is its risk. But even after this, financial planners believe that one should also invest in equity.
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Also, before choosing any investment option, the investor should also assess their future needs and ability to invest in the long run. Experts say that in the long run, it depends only on the ability to take risks, which option should an investor invest in other than safe option. Accordingly, they can invest in equity mutual fund schemes.
Risks can be reduced even in
equity mutual funds Risks can be reduced by diversifying your investments even within equity mutual funds. In this, in addition to multi-cap funds, they also get the option of large-cap, dynamic asset allocation funds. However, financial planners also say that senior citizens should avoid investing in high-risk mutual funds. It is believed that any thematic, sectoral funds or any fund that invests in midcap and smallcap should be avoided.
Can debt mutual funds become an option?
Many senior citizens also think of investing in debt mutual funds. Like equity mutual funds, there is not much risk in this, but there is also risk. However, high-yielding securities held by debt funds offer higher returns but also carry a lot of risk. There are some debt mutual funds such as ultra short term which are slightly safer and give better returns than fixed deposits or other fixed income products. They are also better on the tax front. Therefore it is believed that this will benefit those people who fall in the category of high tax. It can be easily liquidated depending on the need.
before the decision to invest, keep these things in mind
, after retirement, the path of new income is completely closed. Experts tell that any senior citizen should take a decision only after taking into consideration his ability to take risks and the need of regular income. The liquidity of any investment also needs to be noted that the long-term lock-in period for the post-retirement life can be a problem.
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