INVESTMENTS AND RETIREMENT PLANNING

A happy retired life is characterised by financial independence and security. Everybody deserves a comfortable retired life and to make that a possibility, one must save up for it. The idea is to invest in a secured plan on a regular basis to enjoy the fruits of your labour later in your life. You have to be wise while selecting an investment tool that helps you remain financially independent even long after you have retired.
Primarily investment instruments are of two categories, financial assets and non-financial assets. The financial assets comprise of market-linked products such as mutual funds and stocks and the fixed income products such as bank fixed deposit and provident fund. The non-financial assets comprise of real estate and gold.
The following is some of the different investment options for retirement planning:
Equity mutual funds: This mutual fund investment deals principally with stocks and is also known as stock funds. An equity fund can either be actively or passively be managed by the investor. This type of investment generates a higher return on investment than the fixed deposits and the debt fund. It’s quite suitable for retirement planning.
Debt mutual funds: For those of you, who want to enjoy a steady return, investing in the debt mutual funds is an ideal option. The debt mutual funds are not as volatile as the equity funds and therefore are less risky. The government securities, corporate bonds, commercial paper and treasury bills are among the popular fixed-interest yielding market securities.
Annuity Schemes: Primarily an insurance investment programme that is designed to offer a regular flow of income to the investors in their retired life. There are numerous annuities in the markets that differ from each other on the basis of the amount invested and the expected term of the regular flow of payment.
Public Provident Fund (PPF): This investment tool is quite popular among the people. The tenure of 15 years has a compounding effect on the tax-free interest, which enables the investors to build a solid corpus for retirement.The PPF is a safe investment as the invested sum and the interest accrued on it is backed by a sovereign guarantee.
National Pension System (NPS): This investment product is an ideal choice for term retirement planning. It is an assortment including fixed deposits, equities, liquid funds, corporate bonds and government funds. The NPS is regulated by the Pension Fund Regulatory and Development Authority; gauge your risk appetite before investing in any equity through the NPS.
Senior Citizens’ Saving Scheme (SCSS): This is emerging as one of the must-have in the portfolio of most investors. The SCSS is a retirement plan with five-year tenure and only a retired person or a senior citizen can apply for it. This investment scheme can be availed from a bank or a post office.
Be thorough with the terms and conditions of an investment scheme before investing your hard earned money in it. Get in touch with us, if you are unsure which scheme will be the best for planning your retirement.

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not an indicator of future returns. Wealth Redefine is a AMFI registered Mutual Fund distributor – ARN - 85350

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