enior Citizens in India are facing a new challenge - Decline in their income level due to falling interest rates. Deposit interest rates are now at a new recent low of around 6.75%, down from the 8.5% average in 2015. This is here to stay as inflation remains low due to lower demand in the economy.
There are around 40 million senior citizen accounts in India with average deposit size of 3.34 lakhs. The per annum loss of interest work out to Rs.5845 between today and 2015.
What will help the Senior Citizens now to increase the income? Definitely knowledge in Equity whether direct, or indirect way through Mutual Funds, Bonds and Insurance Companies.
The rate of return on equity market from 2014 to 2019 is around 9.3% compounding annually.It can go upto 12 percent based on your knowledge investing.
All you have to do it to simply look for 10 -15 companies with consistent profits and follow the track record of dividend, Bonus, Share movements during volatile situation politically or economically. Track A group companies with ratings to start with. Allocate a small portion of deposits to start with; say 10-25% of your deposits.
Many investment companies are nowadays conducting sessions to senior citizens on Basic Investing in Equity Market.They help them in getting familiarized to Demat accounts which is like your savings bank account but for Equity related investments. This is the first step in doing Equity related investments.
Demat accounts are now offered free of cost by banks with your savings bank account.
If you are tech savvy, operate from the comfort of your living room. No overhead cost for you. Have one reliable investment advisor who helps you in deposits and can do in Equity Investments side.
From Cradle to Coffin, Equity is going to be the buzzword in your lifetime investments.
Take limited risk and don’t be greedy.
Title Image by mohamed Hassan from Pixabay