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Where should an 80-year-old invest Rs 20 lakh?

Dhirendra Kumar advises on an asset allocation plan for a retiree

Where should an 80-year-old invest Rs 20 lakh?

What would be your advice to manage Rs 20 lakh available to invest for an 80-year-old widow who wants to live off the interest? Her children can support her to some extent, but she would ideally like to be independent.
- Lakshmi

Of the Rs 20 lakh, invest Rs 15 lakh in Senior Citizen Saving Scheme (SCSS). That is the highest yielding government-backed guaranteed return instrument available to senior citizens.

If its interest is the only income, it will also be tax-free. But the maximum money that can be invested in SCSS is Rs 15 lakh. Invest the remaining Rs 5 lakh in equity funds in a staggered manner. It will help protect the worth of your capital.

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