 "Map for new investors; Southern food charm: Top personal finance stories | Personal Finance")
A record 1.2 million new investors entered mutual funds in July, the highest since December 2021.
NUMBER OF THE WEEK
47% of fixed deposits are held by senior citizens
According to an SBI report, 47 per cent of fixed deposits are held by senior citizens, implying that younger people are increasingly moving away from traditional instruments like bank deposits.
Seniors favour the security and stable returns of bank deposits. Younger people are turning to direct equities and equity mutual funds, which are riskier but have the potential to deliver higher returns over the long term.
Financial planners suggest that after retirement, a senior citizen’s portfolio should be split into two parts. One part should generate the necessary cash to meet their household expenditures. This portion of the portfolio should be invested in instruments like fixed deposits, annuities, and the senior citizens savings scheme – instruments that have the ability to generate stable cash flows at predetermined intervals.
The other part of the corpus should continue to remain in equities. With lifespans increasing, retirees will need a bigger corpus to meet their post-retirement expenses. This will only be possible if a part of their retirement portfolio is in equities and continues to generate high returns.
First Published: Aug 23 2024 | 7:33 AM IST
