What are the Top Investment Options for Post-Retirement Years?


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When building a retirement corpus, a majority of the investors look for high returns without the risk of losing the deposit amount. For this, it is essential to choose the right investment tool with low risks. Investment tools are categorized based on the risks associated with it.

There is a high-risk investment option like mutual funds, stock markets, etc., and then there is a low-risk investment option like Fixed Deposit (FD), Public Provident Fund (PPF), etc. Depending on your risk appetite and your financial goals, you need to choose your investment tool(s).

What are the Top Investment Options for Your Post – Retirement Needs?

While planning for the finances requires post-retirement, you would want to consider funds enough for a decent lifestyle after retirement. As mentioned above, there are many Retirement investment options available in the market that is best for post-retirement needs based on the degree of risks associated with them, they are:

Public Provident Fund

Public Provident Fund (PPF) is a voluntary investment plan that can be initiated by any Indian citizen with or without a regular income. In this type of investment, you need to deposit a predetermined sum every month into your PPF account with a lock-in period of 15 years. On maturity, the amount accrued along with the applicable interest rate is payable to you.

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Mutual Funds

The mutual fund is a type of systematic investment plan that helps in building a sizeable corpus to meet your financial goals efficiently. Based on the performance of the funds, you can receive your investment returns. Also, some financial providers offer the facility to switch among the fund options without charging any additional fee for the same. You need to switch the investment options based on the fund performances you chose to invest. If you are voluntarily investing in mutual funds, your fund manager will choose the right fund that will yield the highest returns.

Unit Linked Insurance Plans (ULIPs)

ULIPs is a financial product that is a fine blend of investment and insurance. In ULIP plans you can invest in market-linked plans like equity, debt, balance funding options as well as get life covers to get double benefits from your investment. You can choose your funding types based on the fund performance, your risk appetite, and financial goals.

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Fixed Deposit (FD)

Fixed Deposit (FD) is known to be one of India’s most reliable and secure investment option. In this type of investment, you need to deposit a lump sum amount with a flexible tenor and fixed FD interest rates. Conventional banks allow you to deposit in an FD for a tenor ranging from 7 days to 10 years. Apart from the tenor, you can choose the frequency of FD interest rates payout from a monthly, quarterly, half-yearly, or yearly basis.

Why is FD the Most Preferable Investment Option?

Leading Non-Banking Financial Companies (NBFCs) like Bajaj Finance offers unique benefits for investing in FDs. The company is accredited with FAAA from CRISIL and MAAA from ICRA assuring guaranteed returns from investment. Some of the benefits of investing in FDs with Bajaj Finance are as follows:

  • Guaranteed returns with high FD interest rates ranging from 8.75% to 9.10% based on the type of customer, principal amount, type of FD, and tenor of deposit.
  • 35 increase in Fixed Deposit (FD) interest rates for senior citizens.
  • Flexibility in choosing the frequency of interest payout with the non-cumulative FD. With a cumulative FD, the interest payout will be annually or at the time of maturity. With a non-cumulative FD, the interest payout can be chosen to be on a monthly, quarterly, half-yearly, or yearly basis. However, cumulative FD yields higher returns compared to non-cumulative FD.
  • Select the tenor of your FD flexibly from 12 months to 60 months with a minimum deposit of Rs 25000.
  • Make premature withdrawal with duly payment of penalty charges.
  • Avail loan against FD with the ability to use over 90% of the accumulated fund.
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Calculate the FD interest rates and the maturity returns using the online FD calculator.

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