InvestorQ : I am in my early 40’s and want to build up a retirement fund for my husband and me, where should I invest?
Rohan Bhadani made post

I am in my early 40’s and want to build up a retirement fund for my husband and me, where should I invest?

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Gauravi Patel answered.
1 year ago
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For retirement planning, you have several investment options such as:

PPF: It is a retirement savings scheme by the government to provide a secured retirement fund to the investors. The current interest rate offered under the investment is 7.1% p.a., compounded annually which is changed every year by the Finance Ministry. It has a minimum lock-in period of 5 years and a maximum investment tenure of 15 years. One can invest a fixed amount to the account at least once a year. An investor can also claim an 80C deduction for investment in the fund.

ELSS: Equity Linked Savings Scheme is a mutual fund class that is a systematic investment plan. The returns are not guaranteed as they are linked to market volatility. It has a lock-in period of 3 years and one can claim an 80C deduction on it. It provides better returns than other tax-saving investment options, especially in the long run.

NPS: National Pension Scheme is a government scheme that allows an investor to contribute a regular amount to the fund during their working life. On retirement, subscribers could withdraw a partial amount from the corpus (60%). One can also claim deduction under section 80C for contribution to the scheme.

MUTUAL FUND: Investment in a mutual fund can be either in an equity scheme or in a hybrid. The equity scheme is eligible for a deduction, but any other investment in a mutual fund is not eligible. The returns offered under this investment are attractive and risk is higher as compared to other investment options.

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