1. Loans Via Merchants By LiquiLoans

Cube’s partner LiquiLoans is the world’s first-ever CRISIL rated P2P NBFC. It allows you to become a lender who loans money to top-end borrowers and earn lucrative returns of up to 9.35%. 

These top-end borrowers have a credit score of 700+ on average. That’s not all. LiquiLoans is also an RBI regulated P2P NBFC, which means there are caveats to ensure your

1. Loans Via Merchants By LiquiLoans

Cube’s partner LiquiLoans is the world’s first-ever CRISIL rated P2P NBFC. It allows you to become a lender who loans money to top-end borrowers and earn lucrative returns of up to 9.35%. 

These top-end borrowers have a credit score of 700+ on average. That’s not all. LiquiLoans is also an RBI regulated P2P NBFC, which means there are caveats to ensure your money is safe. 

For example, your investment will be diversified across 150 to 250 high-end borrowers on average. If you choose a longer plan, the diversification will be higher as well.

LiquiLoans has a 100% success rate of meeting the indicated yields even during the pandemic! That’s why it makes it to our list of best investments for senior citizens. 

Watch LiquiLoans’ founding member Aagam Maniar explain the asset in detail:

2. Asset Leasing By Grip

Cube’s partner Grip is an NBFC that allows you to become a co-investor in physical assets like equipment, furniture, cars, and more. These physical assets are leased out to creditworthy companies like:

• Blue Tokai
• eBike Go
• Furlenco
• Rentomojo
• Udaan
• VOGO

Asset Leasing by Grip is not linked to the stock market and offers up to 12% post-tax returns. There’s more. Grip is an attractive investment for senior citizens because it generates passive income. 

If you’re wondering how it’s simple. Grip disburses recurring payouts (generally monthly). These payouts can be useful for handling relatively straightforward daily expenses. 

From the table above, you can see that Asset Leasing by Grip has comfortably outperformed traditional investments like bank FDs and RDs. But that’s not all. 

Grip goes one step further to ensure that lucrative returns are coupled with safety by following a 3-step protocol to ensure creditworthiness.  

Investing in Grip on Cube means that your investment is split across 10 unique companies from different assets, domains, and sectors. This is known to mitigate risk, which is important for senior citizens. You can consult a Cube Wealth coach or Download the Cube Wealth app.

Watch Grip’s Founder & CEO explain everything about asset leasing:

3. Liquid Funds

Liquid mutual funds fall in the category of debt funds. Most liquid funds invest in relatively low-risk assets like bonds, T-bills, commercial paper, and others. 

The word “liquid” implies that you can withdraw your investment with ease. Generally, liquid fund withdrawals take 1 to 2 business days (sometimes in less than 30 minutes). 

This is the primary purpose of investing in liquid funds. Other reasons include the relatively safe nature of the investment and the advantage of professional management. 

You might have been surprised to learn that liquid funds are known to be safer than other mutual funds. The core reason is that the assets they invest in generate fixed returns and mature in 91 days or less. 

However, the returns generated by liquid funds are proportional to their safety. That’s why liquid funds are known to generate 3-6% returns on average. 

This makes liquid funds an investment option for senior citizens that’s a replacement for the average bank savings account.

Regardless of the safety, you’ll still have to choose the right liquid funds to invest in. But should you pick mutual funds on your own? This video explains why it is a bad idea.

4. Debt Funds

“Debt fund” is an umbrella term used to describe any mutual fund that invests in debt securities like bonds, treasury bills, commercial paper, and others. As you saw in #4, liquid funds also fall in this category. 

Debt securities generate fixed returns. Their maturity may vary, ranging from 24 hours to 10 years. These two factors mean that debt funds are relatively safer than equity funds and international funds. 

That’s why investors, including senior citizens, are known to invest in debt funds for short to medium-term goals. There are other reasons as well like professional management and relatively low volatility. 

Not to forget, debt funds have historically outperformed bank FDs, a favourite investment option for senior citizens that’s slowly losing its attractiveness.

How can senior citizens get handpicked mutual funds? Watch this video to know more.

5. Senior Citizens Savings Scheme (SCSS)

Senior Citizens Savings Scheme (SCSS) was introduced for those who are above 60 years of age. The goal of SCSS is to provide regular pensions to senior citizens with an interest rate of 7.4% per annum. 

But SCSS is prone to interest rate revisions. Not so long ago, the interest rate on SCSS was as high as 8.7% but was recently reduced to 7.4%. Furthermore, SCSS carries a lock-in of 5 years. 

That said, SCSS carries a very low risk that makes it a top investment option for senior citizens. What you should also know is that the maximum investment amount for SCSS is ₹15 lakhs.

Does SCSS count as one of the best ways to invest money? Watch this video to find out.

Frequently Asked Questions About Investments For Senior Citizens

Conclusion 

In conclusion, selecting the best investment options for senior citizens is a crucial aspect of financial planning during retirement years. Senior citizens have unique financial needs, including the preservation of capital, regular income, and the need to beat inflation.

The best investment options for senior citizens often include a combination of safe and income-generating instruments such as Senior Citizen Savings Scheme (SCSS), fixed deposits, government bonds, and dividend-yielding stocks or mutual funds. The allocation among these options should be based on individual goals, risk tolerance, and financial circumstances. You can consult a Cube Wealth coach or Download the Cube Wealth app.

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Note: Facts & figures are true as of 20-04-2022. None of the information shared here is to be construed as investment advice. Exercise caution when investing in assets like stocks, mutual funds, alternative investments, and others.

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