There are primarily two modes of earning through investing-
1. Buying something which increases in value over a time period e.g. gold, real estate etc.
2. Letting others to use one's own money for profit and get an interest on the money so invested e.g. investing in bank deposits, mutual funds etc.
I myself being a senior citizen and a common man bereft of any specialised training in financial management, continuously ponder over such issues and often get confused primarily because of the age factor.
However, I have learned, so far, this much that there is no magic wand which can multiply our savings overnight irrespective to the number of restless and sleepless nights spend by us.
At advanced age, we cannot think about investing in such options which yield remarkable results over a period of 10-15 years or more.
To sum up, in my opinion, investing in monthly dividend paying mutual funds is a better option for senior citizens who require regular monthly income.
Let us encourage each other in sharing knowledge.
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
Caution: Explosive. Handle with care.
A FD traditionally was the safe instrument for Indians but it locks the money and encourages people to save thereby reduce the spending and business in bank transactions.
Further on, a reduction in interest rates on FD and added an increase in the long-term capital gains would be to discourage people from saving too much and looking at other means to save or spend usefully.
Nothing that comes free in the form of advise suits all especially related to money investments. It would be good to choose a good financial planner, paying them the consultation charges or indirectly by means of the commission they generate from our investments.
For an average person, the investments need to be spread out into equities, MFs, gold, real estate and pension plans(yes, these are a form of investment too). Once done, the allocation and performance in the sectors need to be monitored periodically and more regularly in the case of equities and MFs.