How to invest Rs 12 lakh for a senior citizen?

One of our readers, Shashank Kumar, recently asked us: "I have Rs 12 lakh to invest for my 67-year-old mother for up to five years. How should I do it?" At Value Research, we always suggest that when investing for a senior citizen, you should always keep three things in mind: Safety. In other words, preserving the amount you invest. Regular income. While this may not be a priority for every senior citizen, many want to receive stable money at regular intervals. Protection from inflation The ideal investment portfolio SCSS; for those who need guaranteed regular income Let's look at where to invest for safety and regular income. If the goal is guaranteed income with full capital safety, the Senior Citizens' Savings Scheme (SCSS) is a great choice. It offers a government-backed interest of 8.2 per cent per annum, paid quarterly. By investing Rs 12 lakh, your mother would receive approximately Rs 24,600 every quarter (every three months) with complete capital protection. However, SCSS returns are fixed and may not keep pace with inflation if the investment extends beyond five years. Already used SCSS or need flexibility? If your mother has already exhausted the Rs 30 lakh SCSS limit or doesn't need guaranteed returns, short-duration debt funds are a suitable alternative. These funds are reasonably safe, carry minimal risk and offe

This article was originally published on January 07, 2025.