Mihirji, which is the best investment option for senior citizens to park their money without being taxed?

Ans: Hi S. Rajaram. As per the research of Investica below funds are rated highly
IDFC, Quant, Canara robbeco

Thanks

Ans: The tax saving options are :
ELSS u/s 80C - max - 1.5L
A good medical cover u/s 80D - max - 50000
NPS - max 50,000

In order to save more taxes and have a stable income, she can shift her FD's slowly to mutual funds and have a SWP for her day to day expenses.

Ans: When considering investment options for senior citizens under the age of 75 with good tax savings options, there are a few options worth considering:

Senior Citizen Savings Scheme (SCSS): This government-backed scheme is specifically designed for senior citizens and offers attractive interest rates. Investments in SCSS are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakh per financial year.

Pradhan Mantri Vaya Vandana Yojana (PMVVY): This scheme is offered by Life Insurance Corporation of India (LIC) and provides regular pension income to senior citizens. It offers a higher interest rate than other fixed-income instruments. PMVVY offers tax benefits on the pension received, and the investment amount is eligible for tax deductions under Section 80C.

Tax-saving Fixed Deposits (FDs): Many banks offer tax-saving FDs with a lock-in period of five years. The interest earned is taxable, but the investment amount is eligible for tax deductions under Section 80C.

National Savings Certificates (NSC): NSCs are issued by the Indian government and offer a fixed interest rate. The interest accrued is eligible for tax deductions under Section 80C. However, the interest earned is taxable.

Tax-saving Mutual Funds (ELSS): Equity Linked Saving Schemes (ELSS) are diversified mutual funds that invest primarily in equities. They offer the potential for higher returns over the long term. ELSS investments are eligible for tax deductions under Section 80C, up to a maximum limit of Rs. 1.5 lakh per financial year. However, please note that ELSS investments are subject to market risks.

It is important to consider your risk appetite, financial goals, and investment horizon before making any investment decisions. I would recommend consulting with a financial advisor who can assess your specific circumstances and provide personalized investment advice based on your needs.

Ans: There is nothing related to age in investing. Look for why you wish to invest (your 'financial goals'), your risk profile (how much volatility and risk can you take in your investments), your past experience of investing in various financial instruments and how long do you wish to invest. Answer these questions to yourself and then take a final decision.

If you find it difficult to do this, contact a professional financial advisor near you or online and take it ahead.

Ans: For senior citizens looking to invest in tax-saving mutual funds (Equity Linked Savings Schemes or ELSS), several factors need consideration, including risk tolerance, investment horizon, and financial goals. Since ELSS funds come with a lock-in period of three years and invest primarily in equity, it's essential to choose funds that align with your preferences and objectives.
Here are a few considerations and recommendations for senior citizens investing in ELSS:
1. Risk Tolerance: Evaluate your risk tolerance, as ELSS funds are equity-oriented and subject to market volatility. If you have a lower risk tolerance, consider balanced funds or debt-oriented funds with tax-saving benefits.
2. Investment Horizon: Determine your investment horizon and assess whether you can stay invested for the ELSS lock-in period of three years or longer.
3. Past Performance: Review the historical performance of ELSS funds, focusing on consistency and long-term returns. Look for funds with a track record of delivering competitive returns over various market cycles.
4. Fund Manager Expertise: Assess the expertise and track record of the fund manager managing the ELSS fund. A skilled and experienced fund manager can add value through strategic investment decisions.
5. Expense Ratio: Consider the expense ratio of the ELSS funds, as lower expenses can enhance your overall returns over time.
It's essential to conduct thorough research, consult with a financial advisor, and carefully evaluate your investment options before making any investment decisions. Additionally, consider your overall financial plan, including asset allocation, diversification, and risk management, to achieve your long-term financial goals.