JumpyPretzel

Best place to park 25 lakhs for Pensioned Employee?

Folks, this is for my parents. Let’s suppose we have huge amount in FD, and want to divert some portion of that to any place other than FD, from Tax saving perspective, what is the Best avenue? Please note that it is hard earned retirement money, risk appetite will be a moderate. What all are best lump-sum investment ways? Index Funds? Actively managed Mutual Funds? Anything else?

16mo ago

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FluffyCupcake

Amazon16mo

Go here, https://groww.in/blog/best-tax-saving-investments-for-senior-citizens

JumpyPretzel

Stealth16mo

Thanks, but that article seems written with Old Tax Regime in mind, i.e. it has been written with a perspective of investing in avenues which give Tax saving benefits via 80c, 80d etc In this case, we may keep using New Tax regime, but we want to offload FD amount, so that, that 20+% Tax on FD interest doesn’t kick in.

ZestyQuokka

Stealth16mo

Cannot save tax in new regime. It is a flat rate system. NPS is applicable but not sure if senior citizens can avail

CosmicLlama

Stealth16mo

Never move retirement funds to anywhere other that secur3d investments like FD or RBI bonds.
Mutual fund sahai hai is all ok until shit hits the roof. The same people will come say that markt crash hogaya and walk away.

JumpyPretzel

Stealth16mo

Good point. But my father is fed up of high tax deduction, due to tax on FD. If that amount is shifted to MF, all that taxation will be escaped until redemption; and that too may be just 10% tax. So I was thinking from that angle. Is there anything less risky than equity MF, but better than FD?

DancingUnicorn

Stealth16mo

I'm assuming they also have other income streams which are getting them to taxable slab. Have a look at SWP - Systematic withdrawal plan. Keep it in large cap fund and withdraw only a portion of the amount as monthly expenses.

Diversify your lumpsum into FD, real estate(may be a small plot in your hometown), SGB(gold), senior citizen schemes

I hope they already have good health insurance. They can claim that in new regime.

JumpyPretzel

Stealth16mo

Yeah, huge FD money is causing large tax outgo. How is taxation done on SGB? How does one get that?

SquishyLlama

Stealth16mo

Senior Citizens Savings Scheme, backed by the government.

JumpyPretzel

Stealth16mo

It seems as bad as FD, except for the 80c benefit. Wanted to avoid FD like TDS deduction, as that causes 20+% tax deduction. For ex, equity has 10% tax feature, great for me. Is there anything similar to equity based MF?

CosmicNoodle

Stealth16mo

GILT funds

JumpyPretzel

Stealth16mo

How to choose them? Any resource? Also, isn’t debt fund rendered as bad as FD, after the recent change in policy?

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