Balancing Risk And Returns: Why diversification Matters For Senior Citizens.
While traditional investment choices such as bank fixed deposits, Senior Citizen Savings Scheme (SCSS) and National Savings Certificate (NSC) are low-risk investments, they may not show sharp swings or match inflation, which might eat up the savings. Therefore, your retirement corpus should not be confined to just traditional choices. Diversify your portfolio by investing in stocks, mutual funds, insurance plans and pension schemes from the government like NPS. They will distribute the risk, and offer better returns for more risk. A balanced portfolio is a mix of safe and growth-oriented investments.